Asked by Daysi Antillo on May 23, 2024
Verified
A defined contribution plan promises employees a fixed annual pension benefit.
Defined Contribution Plan
A pension plan in which the contributions into the plan are defined but the employee’s pension may vary depending on investment performance.
Annual Pension Benefit
The amount of money an individual receives from a retirement plan each year after retirement.
- Identify and articulate the features of defined contribution and benefit schemes.
Verified Answer
NS
nateisha santanaMay 26, 2024
Final Answer :
False
Explanation :
A defined contribution plan does not promise a fixed annual pension benefit, but instead specifies the amount of contributions that will be made to the employee's retirement account. The ultimate benefit depends on investment performance and other factors.
Learning Objectives
- Identify and articulate the features of defined contribution and benefit schemes.
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