Question

Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan could be classified as ________.

A) qualified, defined benefit

B) non-contributory, defined benefit

C) non-contributory, defined contribution

D) contributory, qualified

Answer

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