Terminology: Employer-Sponsored Retirement Plans Many employers offer retirement plans as an employee benefit. An opportunity to participate in one should be seized even if at its minimum participation requirements. In order to know what you're getting yourself into, you need to be amiliar with the terms, provisions, and types of plans you may be offered Match the terms relating to the basic terminology and concepts associated with employer-sponsored retirement plan n the left with the descriptions of the terms on the right. Read all descriptions first then make the best match etween each description and term. Type the letter of the description in the Answer column next to the correct term These are not necessarily complete definitions, but there is only one possible answer for each term Term Answer Description ERISA Employees should keep a close eye on their accounts in this type of plan, because stock in their company should only comprise up to but no more than 10% of their retirement savings A plan that meets specified criteria established by the IRS When employees take full possession of their employer's contributions to their plan accounts Often referred to as a salary-reduction plan A law that regulates employer-sponsored plans. It establishes rules for proper reporting and disclosure to plan participants A plan in which both employees and employers may make contributions. A. Vested B. Noncontributory plan C. Contributory plan D. Defined-contribution plan E. Defined-benefit plan F. Qualified plan G. Type of plan that was the standard and most common employer-sponsored retirement benefit many years ago but no longer is today when employees of a firm share some of the company's earnings Profit-sharing plan H. Cash-balance plan I. A plan in which employees are not allowed to make contributions. ESOP . A plan that combines aspects of a defined-contribution and a defined-benefit plan