Item$10\mathrm{.}29$points eBook Print References Item $1$ Required information Required information Learning Objective $17-01$ Explain the fundamental differences between a defined contribution pension plan and a defined benefit pension plan. Skip to question $[$The following information applies to the questions displayed below.$]$ Pension plans are arrangements designed to provide income to individuals during their retirement years. Defined contribution plans promise fixed annual contributions to a pension fund, without further commitment regarding benefit amounts at retirement. Defined benefit plans promise fixed retirement benefits defined by a designated formula. The employer sets aside cash each year to provide sufficient funds to pay promised benefits. The Nature of Pension Plans Knowledge Check $01$ Which of the following statements about pension plans are true? Note: Select all that apply. Check All That Apply Employees covered by defined contribution pension plans choose where funds are invested. Employees covered by defined contribution pension plans choose where funds are invested. The retirement pay of employees covered by defined benefit pension plans depends on the size of the fund at retirement. The retirement pay of employees covered by defined benefit pension plans depends on the size of the fund at retirement. Employers who offer defined benefit pension plans are responsible for ensuring that sufficient funds are available to provide promised benefits. Employers who offer defined benefit pension plans are responsible for ensuring that sufficient funds are available to provide promised benefits. Defined contribution pension plans promise fixed retirement benefits defined by a designated formula.