In a defined benefit plan, the amount of annual funding depends on

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The amount of annual funding in a defined benefit plan depends on all of the factors listed: compensation levels (since a formula based on a percentage of pay is often used to determine benefits), interest earnings (since the plan's investments earn interest and that interest helps fund the promised benefits), and turnover (since turnover can affect the plan's expenses and liabilities).

In a Defined Benefit Plan, the Amount of Annual Funding