Question

32 isabel owns an e - learning company and wants to introduce a group pension plan to the employees. she meets with an agent, alvin, to discuss her needs and get a recommendation. she wants the plan to provide two or more investment options to the members and allow them to make investment decisions. which of the following group pension plans is alvin least likely to recommend for isabel?
a. pooled registered pension plan
b. defined contribution pension plan
c. group registered retirement savings plan
d. defined benefit pension plan

Explanation:

To solve this, we analyze each pension plan:

• Pooled registered pension plan (PRPP): Allows multiple investment options and member investment decisions.
• Defined contribution pension plan (DC): Members choose investments from options.
• Group registered retirement savings plan (RRSP): Members can select investments.
• Defined benefit pension plan (DB): The employer/plan sponsor manages investments; members do not make investment decisions (benefit is based on salary/years of service). Since Isabel wants members to make investment decisions, a DB plan is least likely to be recommended.

Answer:

d. Defined benefit pension plan