Asked by
Chris Spease
on Oct 16, 2024
Verified
Which statement best describes pension plans in Canada?
A) Defined contribution plans have been decreasing.
B) Defined contribution plans have been increasing.
C) Hybrid plans have been decreasing.
D) Defined benefit plans have not changed in terms of their use.
Defined Contribution Plans
A type of retirement plan where the amount of the employer's annual contribution is specified and the future benefits fluctuate based on the plan's investment performance.
Defined Benefit Plans
Defined benefit plans are pension plans where an employer promises a specified pension payment upon retirement, determined by a formula based on earnings history, tenure of service, and age.
Hybrid Plans
Hybrid plans combine features of traditional defined benefit pension plans with those of defined contribution plans, offering benefits of both systems.
- Identify the consequences of defined benefit and defined contribution schemes for both employers and workers.
Verified Answer
EC
Learning Objectives
- Identify the consequences of defined benefit and defined contribution schemes for both employers and workers.