A defined contribution plan (C) best serves organizations that hire mid-career workers with high mobility . At the SPHR level, benefit plan design must align with workforce demographics and employment patterns.
Defined contribution plans—such as 401(k) plans—are portable, allowing employees to retain and transfer accumulated retirement savings as they move between employers. This portability is highly attractive to mobile, mid-career professionals who do not expect long-term tenure with a single organization.
Defined benefit plans (B) reward long service and are less valuable to employees who change employers frequently. Traditional IRAs (A) are individually established and not employer-sponsored pension plans. Rabbi trusts (D) are used for nonqualified deferred compensation for executives, not broad employee retirement coverage.
SPHR exam content stresses that effective total rewards strategies consider workforce mobility, retention patterns, and employee preferences , making defined contribution plans the most appropriate option in this scenario.
HRCI SPHR Study Guide — Matching retirement plan design to workforce demographics.
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