Pensions:
A) can be defined benefit.
B) can be defined contribution.
C) Either a or b
D) must be fixed payments.

Question

Quizplus · Accepted Answer

Pensions can be either defined benefit or defined contribution plans. Defined benefit plans provide a fixed, predetermined payment amount to retirees. In contrast, defined contribution plans involve the employee and/or employer contributing a certain amount to the employee's retirement plan, and the ultimate payout is dependent upon the investment performance of the plan. Therefore, either option is possible for pensions, making option C the correct answer.