Which of the following is a potential reform for defined benefit plans?
A) Refuse to pay benefits for more than 10 years after retirement
B) Reduce the age of retirement to allow employees to develop a second career to save for retirement
C) Eliminate "spiking" or using overtime to increase the salary on which benefits are determined
D) None of the above.

Question

Quizplus · Accepted Answer

Eliminating "spiking" is a potential reform for defined benefit plans. This practice, where employees increase their final salary (often through overtime) to boost their pension benefits, can significantly strain pension funds. Reforming this aspect can help make the plans more sustainable.

Which of the Following Is a Potential Reform for Defined