Author Question: Which of the following statements concerning defined benefit and defined contribution pension plans ... (Read 62 times)

shenderson6 · **on:** Jul 11, 2018

Which of the following statements concerning defined benefit and defined contribution pension plans is (are) true?

I. The employer bears the investment risk with a defined contribution plan.
II. Defined benefit plans favor workers who enter the plan at older ages.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question 2

Lynn works for a state university. In addition to the university's regular retirement plan, Lynn participates in another retirement savings plan.

She elected to have 5,000 of her salary withheld and contributed to a tax-sheltered annuity with an insurer. The type of plan that Lynn established is called a
A) SIMPLE plan.
B) 403(b) plan.
C) defined benefit plan.
D) Keogh plan.