Which of the Following Statements About Defined Contribution Plans Is

Multiple Choice

Which of the following statements about defined contribution plans is incorrect?

A) In general, employees can choose the investment vehicle under a defined contribution plan.Thus, highly risk-averse employees can choose low-risk investments, while more risk-tolerant employees can choose high-risk investments.
B) In a defined contribution plan, the employer must make larger-than-average contributions to the pension plan when investment returns have been below expectations.
C) Defined benefit plans are used more often by large corporations than by small companies.
D) The PBGC insures a portion of pension benefits.
E) A defined contribution plan places the risk of poor pension portfolio performance on the employee.