The kind of pension plan in which employer's contribution is specified in employee's retirement savings funds is classified as?
Correct answer: B. defined contribution pension plan
- A. defined benefit pension plan
- B. defined contribution pension plan
- C. defined noncontributory pension plan
- D. deferred contribution pension plan
Explanation
In a defined contribution plan, the employer's contribution is fixed, while the retirement benefit ultimately depends on contributions and investment performance. A defined benefit plan fixes the retirement payout instead.
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About Human Resource Management
Human resource management deals with acquiring, developing, rewarding and retaining employees within an organisation. It includes job analysis, recruitment, selection, training, performance appraisal, compensation, career planning, labour relations and workplace discipline. Recruitment attracts applicants, while selection evaluates them and chooses the most suitable candidate.
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