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In a defined contribution plan, a formula is used that ensures that employers are at risk to make sure funds are available at retirement. defines

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

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