Which of the following statements is (are) true regarding cash-balance pension plans?
I. Cash balance plans are defined contribution plans.
II. Under a cash balance plan, the employer creates an investment account for each employee into which the employer makes actual contributions and allocates investment gains and losses.
A) I only
B) II only
C) both I and II
D) neither I nor II
Question 2
In the context of employee benefits, the term discrimination refers to benefit comparisons between
A) male and female employees.
B) current employees and retirees.
C) highly compensated employees and non-highly compensated employees.
D) members of an under-represented group (by religious preference, race, or national origin) and the majority of employees.
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