Question

Which of the following statements is true about pension funds?

Answer 1

They are income distributed only to retirees who have worked a certain amount of years. ---- gradpoint

Answer 2

The Options are:
A. The pension benefits to be received by the employee during retirement are defined in the plan.
B. Defined contribution plans have the more complex accounting issues than defined benefit plans.
C. Defined contribution plans do not define the required benefits that must be paid to retired employees.
D. Employers that use defined contribution plans are assuming more risks than employers that use defined benefit plans.

The correct answer is:
C. Defined contribution plans do not define the required benefits that must be paid to retired employees.