Employers are at risk with defined-benefit plans because they must contribute enough to meet the cost of benefits that the plan defines.

Name: Employers are at risk with defined-benefit plans because they must contribute enough to meet the cost of benefits that the plan defines.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Defined-benefit plans require employers to contribute enough to meet the cost of benefits as defined by the plan. Therefore, they are at risk of having to contribute more than expected if the costs of the benefits increase.

Employers Are at Risk with Defined-Benefit Plans Because They Must