Which of the following is true regarding defined benefit and / or defined contribution. Defined Benefit places risk on the employee Defined Contribution places more

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Which of the following is true regarding defined benefit and$/$or defined contribution.

Defined Benefit places risk on the employee

Defined Contribution places more risk on the employee

Defined Contribution places the risk on the employer

None of the above

Spiderman Corp has a defined benefit pension plan. The plan uses a funding formula that considers years of service and average compensation

over employees' last five years of service to determine the pension benefit payable to the plan participants at the time of retirement.

Derrick is a participant in Spiderman Corp's defined benefit pension plan and has $25$ years of service with the company. His career average

salary over the last $25$ years is $$87,500.$ However, his compensation was $$325,000$ per year in the last six years with the company. What is the

maximum pension benefit that could bayable to him at his $2024$ retirement?

$$275,000.$

$$265,000.$

$$245,000.$

$$325,000$