SIE Exam Question 913: Answer and Explanation

Question: 913

Which of the following retirement plans would be most suitable to retain young employees?

• A. Cash balance plan
• B. Defined benefit plan
• C. Money purchase plan
• D. Target benefit plan

Correct Answer: C

Explanation:

The cash balance plan, defined benefit plan, and target benefit plan all favor older employees. The money purchase plan favors younger employees.