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Which Statement Is Correct

Question 10

Multiple Choice

Which statement is correct?


A) The plan sponsor of a defined benefit plan never needs to increase its contributions to the pension trust.
B) A defined contribution plan is a pension plan that places investment risk on the employers.
C) Inadequate contributions to a defined benefit plan by the plan sponsor or poor investment returns will result in an underfunded pension.
D) A defined contribution plan specifies the fixed benefits that future retirees will receive.

Correct Answer:

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