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A defined benefit plan is, by definition, noncontributory
a. True
b. False

User Antoinette
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1 Answer

5 votes

Final answer:

A defined benefit plan is, by definition, noncontributory. False.

Step-by-step explanation:

A defined benefit plan is, by definition, noncontributory. False.

A defined benefit plan is a type of retirement plan in which the employer guarantees a specific benefit payout to the employee upon retirement, regardless of the performance of the plan's investments. The employer bears the investment risk and the responsibility for funding the plan. On the other hand, a noncontributory plan is a type of retirement plan in which the employer solely contributes to the plan without any employee contributions.

User Shaggydog
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