Determine which advantages of a defined benefit plan

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Problem 1: Advantages of a defined benefit plan include which of the following?

I. Benefits for employees who terminate employment at younger ages can be more costly under defined contribution plans than under defined benefit plans.

II. A final pay plan can benefit a participant because it transfers preretirement inflation risk to the employer.

III. The defined benefit approach allows employees to make contributions on a before-tax basis to the plan.

A. I only.

B. I and II only.

C. I and III only.

D. II and III only.

E. I, II and III.The defined benefit approach allows employees to make contributions on a before-tax basis to the plan.

Reference no: EM132937132

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