Match the following plan with the best corresponding descrip

Match the following plan with the best corresponding description.

A type of defined contribution plan that is not a pension plan:

Select one:

a. target benefit plan

b. profit sharing plan

c. flat benefit plan

d. money purchase plan

e. cash balance plan

f. unit benefit plan

Solution

Optio C Flat benefit plan This plan is the way for calculating what pension payoutfrom the defined benefit plan employee. The formula is =No of months/yearsof services*Predetermined flat rate So this is a defined pension plan not defined contribution plan If any doubt please comment. If satisfiied you can rate