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From a Funding Obligation Perspective,why Do Employers Prefer to Use

Question 15

Multiple Choice

From a funding obligation perspective,why do employers prefer to use a defined contribution pension plan?


A) Liability is limited to the amount placed into the plan.
B) Actuarial predictions are made easier.
C) Pensioners are guaranteed a fixed sum of money.
D) This avoids "underfunded" plans.

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