Defined-benefit pension plans are generally ________ and they lack ________.

Question

Quizplus · Accepted Answer

Defined-benefit pension plans are typically noncontributory, meaning the employer bears the entire cost of funding the plan. They also lack portability, meaning the benefits cannot be easily transferred if the employee leaves the company before retirement. Option A is incorrect because defined-benefit plans are not typically contributory. Option B is incorrect because they are usually noncontributory, and Option E is incorrect because the plans are vested, but lack portability.

Defined-Benefit Pension Plans Are Generally ________ and They Lack ________

Defined-Benefit Pension Plans Are Generally and They Lack