In general,in a defined benefit pension plan,the risk of shortfall is borne by the ________; while in a defined contribution pension plan,the risk of the shortfall is borne by the ________.

Question

Quizplus · Accepted Answer

In a defined benefit pension plan, the employer bears the risk of any shortfall in the plan as they have promised to provide a specified benefit to the employee upon their retirement. In a defined contribution pension plan, the risk of any shortfall is borne by the employee as the retirement benefit is based on the contributions made and the investment returns earned on those contributions.

In General,in a Defined Benefit Pension Plan,the Risk of Shortfall