In a ______,the employer guarantees that the participant will receive an annual benefit for life following retirement,or the actuarial equivalent of such a benefit,based on a formula in the plan regardless of contributions made or the plan's investment performance.

Question

Quizplus · Accepted Answer

A defined benefit pension plan is the only option among the given choices that guarantees an annual benefit for life following retirement or the actuarial equivalent of such a benefit based on a formula. The other choices are all defined contribution plans, where the ultimate benefit depends on contributions made and/or the plan's investment performance.

In a ______,The Employer Guarantees That the Participant Will Receive