AFP
CTP · Question #603
(Topic 7) The PRIMARY difference between defined benefit and defined contribution pension plans is whether the employee or the employer:
The correct answer is C. bears risk of a shortfall of the investment results in the plan. See the full explanation below for the reasoning.
Question
- (Topic 7)
The PRIMARY difference between defined benefit and defined contribution pension plans is whether the employee or the employer:
Options
- Areceives the tax reduction benefits of the plan.
- Bdecides which mutual funds are included in the plan.
- Cbears risk of a shortfall of the investment results in the plan.
- Dhires investment managers for the plan.
How the community answered
(33 responses)- A12% (4)
- B6% (2)
- C79% (26)
- D3% (1)
Community Discussion
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