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Which statement is true regarding a defined benefit pension plan? OA. A defined

ID: 2549714 • Letter: W

Question

Which statement is true regarding a defined benefit pension plan? OA. A defined benefit plan defines the annual amount of cash that an employer must deposit to fulfill its pension obligation to employees B. The benefits to be paid to employees depend on events that are beyond the employer's control. At the end of the reporting period, an employer can measure exactly the total amount of pension benefits that it is responsible for providing to employees in the futur. C. D. No investment risk is borne by an employer.

Explanation / Answer

The Answer is B - The benefits to be paid to employees depend on events that are beyond the employer’s control

The true statement regarding defined benefit pension plan is that " THE BENEFITS TO BE PAID TO EMPLOYEES DEPEND ON EVENTS THAT ARE BEYOND THE EMPLOYER’S CONTROL "