Question: It's often said that with a defined contribution plan the employee bears the risk of poor investment performance, but gets the benefit of good investment

It's often said that with a defined contribution plan the employee bears the risk of poor investment performance, but gets the benefit of good investment performance, and that with defined benefit plans it's the employer who has the risk and the benefit of the investment performance. Can you explain what that means? Can you think of some weaknesses in that general assertion

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

When you create a class from which you will instantiate objects to store in an ArrayList, _________________. a. You must create a toString() method b. You must create a compare To () method c. You...

The European Union's priority objective in the economic and political integration of Europe is the elimination of customs barriers and an introduction of common external tariffs . A. True B. False...

In a private defined benefit pension plan the __________ bears the investment risk, and in a private defined contribution plan the __________ bears the investment risk. Multiple Choice A. plan...

In a private defined benefit pension plan the bears the investment risk, and in a private defined contribution plan the bears the investment risk. plan sponsor; U . S . government U . S . government;...

Q1. review case study #1 Understanding Your Employee Benefits: Investing in your Retirement found on page 123 of your textbook. Please post your answers to the two questions found at the end of the...

Ray died this year at age 73, and his wife, Mary, age 55, is the designated beneficiary on his Roth IRA. Ray's Roth IRA was established 3 years ago. Which of the following statements is(are) CORRECT?...

help mi The faculty at the Smith School have started sharing their business contacts with the administration and students to help in recruiting efforts. The hope is that these business contacts will...

Question 1 Who are Nypro's customers? What are their needs? Question 2 Besides its ESOP, what are Nypro's strengths and weaknesses? How do these strengths and weaknesses affect its ability to meet...

ber81438_exr_001-068.qxd 8/11/09 7:38 PM Page 51 EXERCISE 10.3: D EVELOPING AN E MPLOYEE B ENEFITS P ROGRAM * Overview Chapter 10 provides an overview of types of employee benefits programs. The...

I need to find out if I'm on the right track with this assignment and and explanation on what vertical and horizontal analysis are. I don't understand some of the questions and have marked them in...

Define white collar crime.

Most collective bargaining agreements contain arbitration as the last step in the grievance process to resolve a dispute in the workplace. An arbitration is similar to a court hearing and the...

7. Fumaric acid is a colourless solid which can be extracted from plants. (a) Describe the reaction of aqueous fumaric acid with aqueous bromine, giving the equation for the reaction and stating any...

Discuss qualitative research designs in detail?