Charles is one year from retirement when he reads in the newspaper that his employer has been accused of taking the money from the employees' defined benefit retirement plan to finance the reconfiguration of the Houston manufacturing plant. Under which law will his employer be prosecuted?

A) Social Security Act
B) Economic Recovery and Tax Act
C) Federal racketeering law
D) Employee Retirement Income Security Act
E) Economic Growth and Tax Reconciliation Act

Defined Benefit

A type of pension plan in which an employer promises a specified monthly benefit upon retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.

Employee Retirement Income Security Act

A federal law that sets standards for pension and health plans to provide protection for individuals in these plans.

Federal Racketeering Law

Laws aimed at combating organized crime that allow for the prosecution of individuals involved in ongoing criminal organizations, most notably under the Racketeer Influenced and Corrupt Organizations Act (RICO).