Question

1a) Defined benefit plans:

a- are still widely available.

b-guarantee payments to retirees for life.

c-increase a retiree's need to save outside of the plan.

d-are plans most people can rely on without worry.

1b) A defined benefit plan is

a. no longer available to employees.

b. typically offered to only younger workers.

c. a pension plan.

d. a defined contribution plan.

Answer 1

Question 1 A : The correct answer is Option B "guarantee payments to retirees for life."

Defined benefit plans also known as pension plans, These are the employer sponsored plans where money is put aside at regular intervals for the pension at the time of retirement, The plans benefits are guaranteed and these benefits  are raised slightly that can match the rise in cost of living. These benefits are not reliable to all the people as the benefits available are limited, and in case to make larger contribution emplyee can also make contribution but it depends on the plans

Question 1 B : The correct answer is Option C "Pension plans"

Defined benefit plans also known as pension plans, These are the employer sponsored plans where money is put aside at regular intervals for the pension at the time of retirement, The plans benefits are guaranteed and these benefits  are raised slightly that can match the rise in cost of living while direct contribution plans are the plans where the money is put aside at regular intervals to invest in the capital markets like money markets, long term securities, mutual funds, etc.,