Which of the following statements concerning pensions is correct?
A)Defined benefit plans offer a retiree more security than defined contribution plans.
B)The accounting for a defined contribution plan is more complex than for a defined benefit plan.
C)Pension funding must always equal the pension expense.
D)The employee will forfeit vested pension contributions if he\she is terminated.

Question

Quizplus · Accepted Answer

Defined benefit plans guarantee a specific payout amount, providing a retiree more security than defined contribution plans, where the payout is based on the amount contributed and the investment return.

Which of the Following Statements Concerning Pensions Is Correct