Worldatwork Exam T7 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?

AEmployees

BEmployers

CBoth employees and employers

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Suggested Answer: A

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

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Laurel

3 months ago

Yes, that's correct. Employers only contribute a fixed amount, so the investment risk falls on the employees.

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Kristal

3 months 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?

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Arthur

1 months ago

C) Both employees and employers

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Carin

1 months ago

B) Employers

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Eliseo

2 months ago

A) Employees

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Eveline

3 months ago

But in a defined contribution plan, employees bear the investment risk, right?

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Hector

3 months ago

Definitely the employers. They're the ones who have to make the contributions and ensure the plan is properly funded.

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Latricia

2 months ago

Employees don't have to worry about the risk in this type of plan.

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Cheryl

2 months ago

That's correct. Employers are responsible for making contributions and funding the plan.

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Gilbert

2 months ago

Employers assume the risk in a defined contribution benefit plan.

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Loreen

3 months ago

The employees, of course. They're the ones who have to bear the risk of their investments in the plan.

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Katina

2 months ago

It's important for employees to carefully consider their investment options in these plans.

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Louann

2 months ago

That's right, employees assume the risk in a defined contribution benefit plan.

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Destiny

3 months ago

Employees

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Tonja

3 months ago

I disagree, I believe it's the employers who assume the risk.

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Eveline

3 months ago

I think employees assume the risk.

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