Asked by
Paige De’Avion
on Oct 16, 2024
Verified
Ricardo has worked for a local company for the last 25 years.Upon retirement,Ricardo has been guaranteed a salary of $2,000.00 per month under the company's retirement plan.What kind of retirement benefit program is this company using?
A) defined contribution plan
B) tax-deferred plan
C) defined benefit plan
D) registered retirement savings plan
Defined Contribution Plan
A retirement plan in which the employer, employee, or both make contributions on a regular basis, and the final benefits received depend on the investment's performance.
Defined Benefit Plan
A retirement plan where the employer guarantees a specified pension payment upon retirement, based on the employee's earnings history, tenure of service, and age.
Retirement Benefit Program
A financial support plan provided by employers or governments to employees after they retire from active work.
- Understand the outcomes of defined benefit and defined contribution programs for employers and their employees.
Verified Answer
KA
Learning Objectives
- Understand the outcomes of defined benefit and defined contribution programs for employers and their employees.