Jenny must contribute at least 5% of her annual salary to her pension plan,and her employer contributes a set amount as well.She is given choices regarding how the money is invested.When she retires,the amount she has available will depend on how much she invested herself,and the rate of return on the investments she chose.This pension plan could be classified as ________.

Question

Quizplus · Accepted Answer

This is because Jenny is required to contribute a minimum of 5% of her annual salary and her employer also contributes a set amount. The amount available at retirement is based on how much she invested and the rate of return on investments she chose, which are all characteristics of a defined contribution plan.

Jenny Must Contribute at Least 5% of Her Annual Salary