Which of the Following Statements Is Correct with Respect to Defined

Multiple Choice

Which of the following statements is correct with respect to defined benefit and defined contribution plans?

A) A defined benefit plan is one where the plan is required to pay benefits for a certain term but the amount paid is not certain.
B) A defined contribution plan is one where the contributions are fixed, but the payout term and amount is dependent on the amount accumulated in the fund and the rate of return on the investments of the fund.
C) A defined benefit plan is one where the plan is required to pay a specific amount until the fund is depleted.
D) Defined contribution plans provide an individual retirement account for each participating employee and no obligation exists for pension benefits beyond what has been accumulated in each individual's account.