Winslow Corporation has many long-term employees.The company has never had a pension plan.Recently,a new management team was hired.The new president said he would like to start a pension plan through which he could reward the long-term service provided by many employees.Which of the following types of plans should Winslow Corporation adopt?

Question

Quizplus · Accepted Answer

A defined benefit plan is a pension plan that provides a specified amount of retirement benefits to employees based upon a formula that takes into account the employee's years of service and salary history. This type of plan would be ideal for the Winslow Corporation as it allows the new management team to reward the long-term service provided by many employees.

Winslow Corporation Has Many Long-Term Employees