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When Offering Pension Plans, Many Companies Now Opt for a Defined

Question 23

Multiple Choice

When offering pension plans, many companies now opt for a defined contribution plan rather than defined benefit plans. Defined contribution plans


A) promise a set amount to workers when they retire based on final salary and number of years of service.
B) promise a set amount to workers when they retire based on average salary and number of years of service.
C) say how much workers have to pay into the plan, and guarantee a set return.
D) say how much workers have to pay into the plan, but do not guarantee a set return.

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