In: Accounting
For which type(s) of retirement plans is the yearly pension expense affected by expected market value changes of the assets of the plan?
Select one:
a. Both Defined Benefit and Defined Contribution
b. Neither Defined Benefit nor Defined Contribution
c. Defined Benefit, but not Defined Contribution
d. Defined Contribution, but not Defined Benefit
d
As in direct contribution plan, amount is typically invested in selected mutual funds and money market funds which may get affected by expectedmarket value changes of assets of the plan.