When a company sets up a defined contribution pension plan, the ________ bears all the risk and the ________ receives all the return from the plan's assets.

Question

Quizplus · Accepted Answer

In a defined contribution pension plan, the employee bears all the risk associated with the investment options chosen within the plan. Similarly, the employee receives all the return from the plan's assets, as their retirement benefit is directly tied to the performance of these investments.

When a Company Sets Up a Defined Contribution Pension Plan