An employee of XYZ will receive retirement benefits of $1,000 per month if the employment period is 15 years.However, if the employment period is 20 years, the retirement benefits will be $1,300 per month.This is an example of a defined contribution pension plan.

Question

Quizplus · Accepted Answer

This is an example of a defined benefit pension plan because the retirement benefits are determined by a formula based on factors like employment duration and salary, rather than the contributions made to the plan.

An Employee of XYZ Will Receive Retirement Benefits of $1,000