In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Jeremy, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which statement strengthens Jeremy's belief?
A. Pension plans are determined exclusively by state and federal laws.
B. Extending pension plans to employees at all levels will triple the costs.
C. The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees.
D. A top-heavy plan requires faster vesting for non-key employees.
E. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.
Answer: E
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