Under a ______ the employee does not know what their retirement benefit will be.
A) utilization analysis
B) defined contribution plan
C) vesting plan
D) defined benefit plan

Question

Quizplus · Accepted Answer

Under a defined contribution plan, the employer contributes a set amount or a percentage of the employee's salary to the retirement account. However, the retirement benefit is not fixed or guaranteed as it depends on the performance of the investments made with the contributions. Therefore, the employee does not know what their retirement benefit will be, unlike a defined benefit plan, where the retirement benefit is predetermined based on factors such as salary and years of service.

Under a ______ the Employee Does Not Know What Their