Which of the following is true about defined contribution plans?

Question

Quizplus · Accepted Answer

Defined contribution plans shift the investment risk to employees, have fewer administrative challenges and do not require payments to the PBGC. They are preferred in smaller companies, perhaps because of small employers' desire to avoid long-term obligations or perhaps because small companies tend to be younger, often being founded since the trend toward defined contribution plans. Defined contribution plans continue to grow in importance, while, defined benefit plans have become less common.

Which of the Following Is True About Defined Contribution Plans