All the following items could explain an employer establishing an income-replacement objective that generates less than 100% of full preretirement gross income EXCEPT:

A. Some of the employee's income consists of Social Security benefits.

B.Passive investment income is not subject to federal income taxes if the taxpayer is retired and collecting a pension.

C. An employee's personal savings can be a source of retirement income.

D. Some reduction in gross income can take place without causing a reduction in a retiree's standard of living.

E. The employer may have a supplemental profit sharing or savings plan that can be a source of additional income.