Question

Which best explains how a pension plan differs from a profit-sharing plan? a A. Employers may elect not to contribute to profit sharing in a poor revenue year. B. Companies may take back the money contributed to pensions. C. Profit sharing plans require employees to make contributions, as well. D. Only managers are covered by profit sharing plans.​

Answer 1

Differences Between a Defined Contribution Pension Plan and a Defined Benefit Pension Plan.

With a defined contribution pension plan, the benefit that the employee will accrue is unknown or defined ahead of her retirement.  But the contributions that will be made by the employer and the employee to fund the pension are spelled out.

With a defined benefit pension plan, the benefit (i.e. the monthly payment to the retiree) is stated ahead of the pension time.  It is based on the employee's tenure and salary.  Employees do not contribute to the plan but are entitled to lifetime monthly payments.

Explanation:

The employer and each employee contribute certain percentages to each worker's retirement account (IRA) under the defined contribution pension plan.  Under the defined benefit pension plan, the employer is solely responsible for funding the plan and the employee benefits via a monthly payment from the funding plan during retirement.

so i think its D hope that helps