A _____ is a retirement program in which employees are promised a pension amount based on age and years of service.
A) stock purchase plan
B) defined contribution plan
C) defined benefit plan
D) cash balance pension plan

Question

Quizplus · Accepted Answer

A defined benefit plan is a retirement program in which employees are promised a pension amount based on age and years of service. A stock purchase plan is a program that allows employees to purchase company stock. A defined contribution plan is a retirement plan in which employers contribute a set amount to an employee's retirement account, but the eventual payout is based on investment returns. A cash balance pension plan is a hybrid plan that combines features of both defined benefit and defined contribution plans.

A _____ Is a Retirement Program in Which Employees Are