Defined benefit pension plans can be subdivided into three types single employer,multi-employer agent,and cost-sharing multiplier.
It is important to keep this distinction in mind,because each type is subject to different reporting requirements.Future investment returns and future benefits to be paid are not known in advance,so there is no guarantee that a given level of contributions will be sufficient to meet benefits.A defined benefit plan, more commonly known as a pension plan,offers guaranteed retirement benefits to employees. Defined benefit plans are largely funded by employers,with retirement payments based on a set formula that considers an employee's salary,age and tenure with the company makes a matching contribution.Two popular types of these plans are a defined benefit plan commonly called a pension plan.This plan offers guarantees. Generally,this type of pension plan is funded by employers for their employees with retirement payments based on a set formula.
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