RST's pension plan provides retirement benefits of $8,000 per year to all employees who have worked for the company for at least 10 years.Contributions to the plan are made 75 percent by RST and 25 percent by the employees.The pension plan is characterized as both:

Question

Quizplus · Accepted Answer

The pension plan is contributory because both the employer and employees contribute to it. It is defined benefit because it specifies a fixed annual benefit of $8,000.

RST's Pension Plan Provides Retirement Benefits of $8,000 Per Year