Refer to Scenario 11.1. Some of Canadian Fasteners' employees have been around since its inception and are well into their late 40s. Which of the following pension plans would be most effective in allowing employees to have a decent pension when they retire?

A) a non-contributory plan
B) a contributory plan
C) a registered retirement savings plans with only the employee contributing
D) a defined non-contributory plan

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Michelle Lopez · Accepted Answer

Final Answer : B, Explanation :  A contributory plan, where both the employer and employees contribute to the pension fund, is most effective in ensuring employees have a decent pension upon retirement. This approach encourages shared responsibility and often results in a larger pension fund due to contributions from both parties.

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