Asked by CHELSEY MYERS on Jul 11, 2024
Verified
A predetermined formula is used to calculate retirement benefits under what type of benefit plan?
A) a defined benefit plan
B) a defined contribution plan
C) a specified benefit plan
D) a non-specified benefit plan
Non-specified Benefit Plan
An employee benefit plan that does not define specific benefits in advance but may provide a pool of funds for potential distribution.
Specified Benefit Plan
A retirement plan where the benefits to be received by employees are defined and specified in advance.
Defined Benefit Plan
A retirement plan in which an employer commits to paying a specified pension amount to employees upon retirement, based on factors like salary history and length of employment.
- Learn about the different categories of pension and benefit plans and their exclusive characteristics.
Verified Answer
MS
Mohit SharmaJul 15, 2024
Final Answer :
A
Explanation :
A defined benefit plan uses a predetermined formula to calculate retirement benefits, typically based on factors like salary history and years of service.
Learning Objectives
- Learn about the different categories of pension and benefit plans and their exclusive characteristics.