In a defined-contribution plan, a formula is used that ______?

وضاحتی شراکت کے منصوبے میں ، ایک فارمولا استعمال کیا جاتا ہے کہ ______؟

Defines the benefits that the employee will receive at the time of retirement

Ensures that pension expense and the cash funding amount will be different

Requires an employer to contribute a certain sum each period based on the formula

None of these

In a defined-contribution plan, employers contribute a fixed amount based on a set formula, usually as a percentage of the employee’s salary.

The final retirement benefits depend on the investment performance of the contributed funds, not a pre-determined payout.