Question

All of the following statements are true about non-contributory defined benefit retirement plans EXCEPT:__________.
StatusA A. contribution amounts vary based upon the age of the person covered under the plan
StatusB B. larger contributions are made for older plan participants nearing retirement than for younger ones
StatusC C. once benefit payments start, the amount of the benefit is fixed
StatusD D. contribution amounts remain fixed based regardless of age

Answer 1

Answer:

D. contribution amounts remain fixed based regardless of age

Explanation:

This fund is usually derived by University contributions to a trust fund and doesn’t require any employee contribution.

The contribution amounts vary based upon the age of the person covered under the plan

The larger contributions are made for older plan participants nearing retirement than for younger ones and once benefit payments start, the amount of the benefit is fixed