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Why Have Employers Switched to Defined-Contribution Plans Instead of Defined-Benefits

Question 85

Multiple Choice

Why have employers switched to defined-contribution plans instead of defined-benefits plans for most companies?


A) They remove the financial risk for future pension costs away from the company and pass it on to the employee.
B) The employer doesn't want to do any bookkeeping for the retirement plan.
C) Employers care deeply about what employees eventually receive from their plan.
D) All of the above are correct.
E) Only A and B are correct.

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