Which of the following statements is (are) true regarding cash-balance

Which of the following statements is (are) true regarding cash-balance pension plans?

I. Cash balance plans are defined contribution plans.
II. Under a cash balance plan, the employer creates an investment account for each employee into which the employer makes actual contributions and allocates investment gains and losses.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: D