Why is it said that investment risk is borne by the employer in a DB plan and

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Why is it said that investment risk is borne by the employer in a DB plan and a worker in a DC plan? Why might employers favor DC plans over DB plans?

Which plan requires the greater level of financial understanding of the employee? Why?

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Financial Markets Banking And Monetary Policy

ISBN: 9781118872239

1st Edition

Authors: Thomas D. Simpson

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Question Posted: Feb 02, 2024 09:34 AM

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Why is it said that investment risk is borne by the employer in a DB plan and

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In a Defined Benefit DB pension plan the employer guarantees a certain payout for the employee upon ...View the full answer

Financial Markets Banking And Monetary Policy

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