Which type of group plan involves no investment decisions being made by the employee?

Which type of group plan involves no investment decisions being made by the employee?

• A. DPSP
• B. DBPP
• C. DCPP
• D. GRRSP

Answer: (B)

The type of group plan that involves no investment decisions being made by the employee is the Defined Benefit Pension Plan (DBPP). In a DBPP, the employer is responsible for determining the investment strategy and managing the investment portfolio. The employees do not have a say in how the funds are invested; instead, they receive a predetermined benefit upon retirement that is calculated based on factors such as their salary and years of service. This contrasts with other types of plans, where employees may have the opportunity to make choices related to their investments, which requires them to engage in decision-making regarding their retirement savings. This structure of the DBPP alleviates employees from the complexities and uncertainties of investment management, providing them with a more straightforward benefit which simplifies their retirement planning and financial security.

The type of group plan that involves no investment decisions being made by the employee is the Defined Benefit Pension Plan (DBPP). In a DBPP, the employer is responsible for determining the investment strategy and managing the investment portfolio. The employees do not have a say in how the funds are invested; instead, they receive a predetermined benefit upon retirement that is calculated based on factors such as their salary and years of service. This contrasts with other types of plans, where employees may have the opportunity to make choices related to their investments, which requires them to engage in decision-making regarding their retirement savings.

This structure of the DBPP alleviates employees from the complexities and uncertainties of investment management, providing them with a more straightforward benefit which simplifies their retirement planning and financial security.