Question

Which of the following statements regarding defined contribution plans is false? A. Employers bear investment risk relating to the plan.B. Employees immediately vest in their contributions to the plan.C. Employers typically match employee contributions to the plan to some extent.DAn employer's vesting schedule is used for employers' contributions in determining the amount of the . plan benefits the employee is entitled to receive on retirement.

Answer 1

Answer:

The correct answer is A. Employers bear investment risk relating to the plan.

Explanation:

The first statement is false, because the main actors in that case would not be employers, but employees. The contribution plan is defined as a pension plan in which the company agrees to make monetary contributions each year for the benefit of the employee. For example, the company can contribute 1% of the salary to a pension fund every month. The employee can also contribute part of his salary to this plan.