Question

21

Which of the following statement is correct?

	A.	Defined benefit plans are regulated and protected under ERISA.
	B.	Defined benefit pension plans are more likely to be offered in the private sector than in the public (firefighters; police) sector.
	C.	Defined contribution pension plans are less affordable for employers than defined benefit pension plans.
	D.	When businesses go bankrupt and out of business, retired workers have no way to recover the money that had been promised them by their bankrupt employers in their defined benefit pension plans.
	E.	Defined contribution pensions are gradually being replaced by defined benefit plans in the U.S

Answer 1

Ans:-A) Defined benefit plans are regulated and protected under ERISA.

Explanation:- The ERISA or The Employees Retirement Income Security Act protect and regulate the defined benefits plans. The defined benefit plan is not common in private sector , in public sector certain government jobs it is common. In the defined contribution plan the employees and employers contribute some amount.If the business declares bankruptcy the retired workers fund must be safe in the company.