A defined benefit plan is one in which

the employer promises specified payments to employees on their retirement.

the specific provisions are defined by the Internal Revenue Code.

the specific provisions are defined by the Uniform Code of Retirement Plans

the employee can specify the mix of benefits (e.g., health, pension, Insurance that will be received on retirement.

Solutions

Expert Solution

A defined benefit plan is the plan in which employer gives specific retirement benefit plan to the employees by making yearly provision for the services rendered by the employees.

In the basis of above, let's analyze each option-

Option (a) Incorrect. It is not a specified payment, actual amount at the end of service period changes on account of change in compensation.

Option (b) Incorrect. IRC does not specifies a fixed amount for provision.

Option (c) Correct Retirement plans are the one as defined under uniform code of retirement plans.

Option (d) Incorrect. It only covers post employment benefit plans unlike health insurance which is during the course of employment.

On the basis of above, we can conclude that option (c) is the correct answer.

ekkarill92 answered 1 year ago

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