Asked by
Nicole Mariano
on Oct 16, 2024
Verified
Which term refers to a company pension plan that guarantees a certain benefit to retirees regardless of market conditions?
A) defined benefit plan
B) money purchase plan
C) defined contribution plan
D) Canada Pension Plan
Defined Benefit Plan
A type of pension plan where the benefits that the employee will receive upon retirement are predefined, usually based on factors like salary and years of service.
Money Purchase Plan
A type of defined contribution retirement savings plan where employer and employee contributions are fixed.
Canada Pension Plan
A mandatory public retirement insurance program in Canada, providing income to retired workers.
- Recognize the implications of defined benefit and defined contribution plans for employers and employees.
Verified Answer
NV
Learning Objectives
- Recognize the implications of defined benefit and defined contribution plans for employers and employees.