Tasha and Margaret are having a debate about the advantages of belonging to a defined-benefit pension plan, as opposed to a defined-contribution pension plan. Which of the following statements is true?
a) The employer faces all of the investment risk in a defined-contribution plan.
b) The employee faces all of the investment risk in a defined-benefit plan.
c) Unlike defined-benefit plans, defined-contribution plans have inflation protection.
d) Unlike defined-contribution plans, later career earnings have more effect than early career earnings on the amount of pension benefits provided by final-average, defined-benefit plans.