A defined ____________ plan offers a guaranteed level of retirement income.
A) contribution
B) non-contributory
C) benefit
D) retirement
E) spending

Question

Quizplus · Accepted Answer

A defined benefit plan, also known as a pension plan, offers a guaranteed level of retirement income that is predetermined based on factors such as years of service and salary. This is different from a defined contribution plan (Choice A), where the retirement income is dependent on the contributions made and the returns earned, and there is no guaranteed level of income. A non-contributory plan (Choice B) refers to a plan where the employer makes all the contributions, but this does not necessarily guarantee a level of retirement income. Retirement plan (Choice D) is a general term that can refer to any plan designed to provide retirement benefits, but it does not specify the type of plan or the level of income. Spending plan (Choice E) is not related to retirement plans.

A Defined ____________ Plan Offers a Guaranteed Level of Retirement