Which of the following characteristics describes a defined benefit plan?
A) Subject to PBGC plan termination insurance rules.
B) An account for each participant is not established.
C) Defines the amount the employer is required to contribute.
D) Only a. and b.
E) a., b., and c.

Question

Quizplus · Accepted Answer

A defined benefit plan is subject to PBGC plan termination insurance rules and does not establish an individual account for each participant. It defines the benefit to be received, not the contribution amount.

Which of the Following Characteristics Describes a Defined Benefit Plan