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Sticky Note
In a defined-contribution plan, a formula is used that ______?
وضاحتی شراکت کے منصوبے میں ، ایک فارمولا استعمال کیا جاتا ہے کہ ______؟
  1. Defines the benefits that the employee will receive at the time of retirement
  2. Ensures that pension expense and the cash funding amount will be different
  3. Requires an employer to contribute a certain sum each period based on the formula
  4. None of these
Explanation
  • In a defined-contribution plan, employers contribute a fixed amount based on a set formula, usually as a percentage of the employee’s salary.

  • The final retirement benefits depend on the investment performance of the contributed funds, not a pre-determined payout.

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