Melissa's retirement plan is described in her employee handbook as follows: .Which of the following statements about this retirement plan is true?

Question

Melissa's retirement plan is described in her employee handbook as follows:  .Which of the following statements about this retirement plan is true?

Quizplus · Accepted Answer

The statement that if Melissa leaves the company before working full-time for 3 years, she will not receive any benefits suggests that this retirement plan has a vesting schedule. A vesting schedule determines when an employee has earned the right to the employer's contributions to their retirement plan. Option A is incorrect because it is not clear from the information provided whether Melissa will have to contribute to the plan. Option C is incorrect because there is no mention of whether Melissa will have to make investment decisions. Option D is also incorrect because the retirement plan is not described with enough detail to determine if it is a defined contribution plan. Therefore, option B is the best choice as it is the only statement that can be confirmed from the information provided.

Melissa's Retirement Plan Is Described in Her Employee Handbook as Follows