A pension plan that promises employees a fixed annual pension benefit, based on years of service and compensation, is called a (n)

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A defined benefit plan is a type of pension plan that promises employees a fixed annual pension benefit, based on years of service and compensation. The employer is responsible for funding the plan and is liable for providing the promised benefits to employees upon retirement. The other options (A, C, and D) do not accurately describe a defined benefit plan.

A Pension Plan That Promises Employees a Fixed Annual Pension