Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Worldatwork T7 Exam - Topic 2 Question 108 Discussion

In a defined contribution benefit plan, who assumes risk?
A) Employees
B) Employers
C) Both employees and employers

Worldatwork T7 Exam - Topic 2 Question 108 Discussion

Actual exam question for Worldatwork's T7 exam
Question #: 108
Topic #: 2
[All T7 Questions]

In a defined contribution benefit plan, who assumes risk?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Talia at Mar 05, 2025, 09:29 AM

Limited Time Offer

25%

Off

Get Premium T7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Tammy
10 months ago
It's definitely employees, they control their own contributions.
upvoted 0 times
...
Melissa
10 months ago
Totally agree, it's all on the employees!
upvoted 0 times
...
Gertude
10 months ago
Sounds right, but I still have my doubts about how that works in practice.
upvoted 0 times
...
Alona
10 months ago
Wait, are you sure? I thought employers had some responsibility too.
upvoted 0 times
...
Basilia
10 months ago
Employees assume the risk in a defined contribution plan.
upvoted 0 times
...
Queen
11 months ago
I definitely recall that in defined contribution plans, the employees bear the investment risk.
upvoted 0 times
...
Oneida
11 months ago
I’m a bit confused; I thought the employer had some responsibility too, but maybe that’s only in defined benefit plans?
upvoted 0 times
...
Nickole
11 months ago
I remember a practice question where it mentioned that both employees and employers contribute, but the risk is mostly on the employees.
upvoted 0 times
...
Chun
11 months ago
I think the employees assume the risk in a defined contribution plan, but I'm not entirely sure.
upvoted 0 times
...
Theodora
12 months ago
I think the key here is understanding the difference between defined contribution and defined benefit plans. In a defined contribution plan, the employee bears the investment risk, not the employer.
upvoted 0 times
...
Loren
12 months ago
Okay, I remember learning about this in class. I believe the correct answer is C - both employees and employers assume risk in a defined contribution plan.
upvoted 0 times
...
Page
12 months ago
Hmm, I'm a little unsure about this one. I'll need to think it through carefully.
upvoted 0 times
...
Kiley
1 year ago
I'm pretty sure the answer is A - employees assume the risk in a defined contribution plan.
upvoted 0 times
...
Laurel
2 years ago
Yes, that's correct. Employers only contribute a fixed amount, so the investment risk falls on the employees.
upvoted 0 times
...
Kristal
2 years ago
Ha! Both of them, like a seesaw. The employees are on one end, the employers on the other. Gotta keep that balance, am I right?
upvoted 0 times
Arthur
1 year ago
C) Both employees and employers
upvoted 0 times
...
Carin
1 year ago
B) Employers
upvoted 0 times
...
Eliseo
1 year ago
A) Employees
upvoted 0 times
...
...
Eveline
2 years ago
But in a defined contribution plan, employees bear the investment risk, right?
upvoted 0 times
...
Hector
2 years ago
Definitely the employers. They're the ones who have to make the contributions and ensure the plan is properly funded.
upvoted 0 times
Latricia
1 year ago
Employees don't have to worry about the risk in this type of plan.
upvoted 0 times
...
Cheryl
1 year ago
That's correct. Employers are responsible for making contributions and funding the plan.
upvoted 0 times
...
Gilbert
2 years ago
Employers assume the risk in a defined contribution benefit plan.
upvoted 0 times
...
...
Loreen
2 years ago
The employees, of course. They're the ones who have to bear the risk of their investments in the plan.
upvoted 0 times
Katina
2 years ago
It's important for employees to carefully consider their investment options in these plans.
upvoted 0 times
...
Louann
2 years ago
That's right, employees assume the risk in a defined contribution benefit plan.
upvoted 0 times
...
Destiny
2 years ago
Employees
upvoted 0 times
...
...
Tonja
2 years ago
I disagree, I believe it's the employers who assume the risk.
upvoted 0 times
...
Eveline
2 years ago
I think employees assume the risk.
upvoted 0 times
...

Save Cancel