Question: Question 18 (5 points) The fundamental difference between defined contribution and defined benefit plans is: Employers commit to paying our certain cashflows during the retirement

Question 18 (5 points) The fundamental difference between defined contribution and

Question 18 (5 points) The fundamental difference between defined contribution and defined benefit plans is: Employers commit to paying our certain cashflows during the retirement of an individual under defined benefit plans, whereas they only commit to contributing certain cashflows to the account in a defined contribution plan. Employees are prohibited by law from contributing to defined benefit plans, whereas employees are required by law to contribute their own funds to defined contribution plans. Under define benefit plans the employee assumes all the risk of investment returns, whereas under defined contribution plans the employer assumes this risk

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