Asked by Faith Granville on Jul 29, 2024
Verified
Which organizations benefit when switching from a defined-benefit plan to cash balance plans?
A) organizations with many experienced employees
B) organizations with a few skilled employees
C) organizations with many young employees
D) organizations with many retired employees
E) organizations with highly skilled, young employees
Defined-Benefit Plan
A type of pension plan in which an employer promises a specified pension payment upon retirement, determined by a formula considering factors like salary and duration of employment.
Cash Balance Plans
A type of defined benefit pension plan that holds an employee's retirement savings as a hypothetical account balance, which grows annually through employer contributions and interest credit rates.
Experienced Employees
Workers who have accumulated significant skill and knowledge in their field through prolonged exposure to various professional situations.
- Apprehend the significance of retirement programs and their influence on long-standing labor relations.
Verified Answer
Learning Objectives
- Apprehend the significance of retirement programs and their influence on long-standing labor relations.
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