Question
You are thinking about applying to work for Husky company. Item 8, Note 9: Financial Information Benefit Plans We sponsor retirement savings plans for employees
You are thinking about applying to work for Husky company.
Item 8, Note 9: Financial Information
Benefit Plans
We sponsor retirement savings plans for employees meeting certain eligibility requirements. Participants may choose from various investment options, including a fund comprised of our company stock. Participants can contribute up to 50% of their eligible compensation annually as defined by the plan document, subject to Internal Revenue Service limitations. We match 100% of the first 3% of participating employees' contributions and 50% of the next 2%. Employer contributions vest immediately. The total employer contributions were $46 million, $42 million and $61 million in fiscal 2019, 2018 and 2017, respectively.
If you were to ask about the company benefits, which of the following statements is NOT true for this type of pension retirement plan?
a. | It is a defined contribution plan: After company obligations are paid, the company has no further obligation to the plan. | |
b. | It is a defined contribution plan: it shifts investment risk to the employee. | |
c. | It is a defined benefit plan: it defines future benefits to the employee. | |
d. | It is a defined contribution plan: it can be provided to employees at a lower cost to the company than a defined benefit plan. | |
e. | It is a defined contribution plan: it defines the current contributions made to the plan. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started