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What is true about a defined benefits pension plan? The benefits to be paid to employees depend on events that are beyond the employer's control.
What is true about a defined benefits pension plan?
The benefits to be paid to employees depend on events that are beyond the employer's control.
A defined benefit plan defines the amount of cash that an employer must deposit to fulfill its pension obligation to employees.
No investment risk is borne by an employer.
At the end of the reporting period, an employer can measure exactly the total amount of pension benefits that it is responsible to employees in the future.
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