In a contributory defined contribution pension plan,all of the following are true with the exception of
A)a separate account is established for each participant.
B)both the employee and employer can make contributions to the plan.
C)amounts are contributed to the plan based upon a specific formula.
D)retirement benefits are a fixed amount based on the level of compensation earned by the employee during the working years.

Question

Quizplus · Accepted Answer

In a contributory defined contribution pension plan, retirement benefits are not a fixed amount based on the level of compensation earned by the employee during the working years. Rather, the retirement benefits are based on the amount of contributions made to the plan and the investment returns earned on those contributions.

In a Contributory Defined Contribution Pension Plan,all of the Following