Asked by arianna denn-thiele on Jul 14, 2024
Verified
In a defined-benefit plan, the retirement benefit is determined according to a predetermined formula.
Defined-Benefit Plan
A type of retirement plan where the employer guarantees a specific retirement benefit amount for the employee based on a formula.
Predetermined Formula
A specific method set in advance for calculating a particular outcome or value.
- Delineate between different types of pension plans and their characteristics.
Verified Answer
ST
Sushan ThapaJul 18, 2024
Final Answer :
True
Explanation :
In a defined-benefit plan, the retirement benefit is indeed determined according to a predetermined formula, typically based on factors such as salary history and years of service.
Learning Objectives
- Delineate between different types of pension plans and their characteristics.
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