A(n)________ plan does not require the employer to guarantee retirement benefits nor to maintain a minimum level of pension reserves.

Question

Quizplus · Accepted Answer

A defined contribution plan does not require the employer to guarantee retirement benefits or maintain a minimum level of pension reserves. Instead, the employer and/or employee contribute to an individual account for the employee, and the retirement benefit depends on the performance of the investments in that account.

A(n)________ Plan Does Not Require the Employer to Guarantee Retirement