In a defined-contribution plan, a formula is used that

In a defined-contribution plan, a formula is used that



a. defines the benefits that the employee will receive at the time of retirement.
b. ensures that pension expense and the cash funding amount will be different.
c. requires an employer to contribute a certain sum each period based on the formula.
d. ensures that employers are at risk to make sure funds are available at retirement.


Answer: requires an employer to contribute a certain sum each period based on the formula


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