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  • Who bears the investment risk in defined benefit plan?
Multiple choice general knowledge

Who bears the investment risk in defined benefit plan?

  1. Employer

  2. Employee

  3. Annuitant

  4. None of the above

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A Correct answer
Explanation

In a defined benefit pension plan, the employer promises a specified payout upon retirement, meaning the employer bears all the investment and market risk to fund that promised amount.

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