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The defined benefit plan is a type of plan in which the employer's contribution into the pension fund is based on a formula. true or False?

User Steve Pugh
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Final answer:

The defined benefit plan is a type of plan in which the employer's contribution into the pension fund is based on a formula. This statement is true.

Step-by-step explanation:

The statement 'The defined benefit plan is a type of plan in which the employer's contribution into the pension fund is based on a formula.' is true.

Defined benefit plans are retirement plans in which the employer provides a predetermined payout to employees based on a formula that usually considers factors like salary and years of service. The employer's contribution to the pension fund is determined by the formula, which can vary between companies.

User Amichaud
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