RST's pension plan provides retirement benefits of $8,000 per year to all employees who have worked for the company for at least 10 years.Contributions to the plan are made 75 percent by RST and 25 percent by the employees.The pension plan is characterized as both:

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The pension plan is contributory because both the employer (RST) and the employees make contributions to the plan. It is defined benefit because it specifies the benefits to be received by employees upon retirement, in this case, $8,000 per year.

RST's Pension Plan Provides Retirement Benefits of $8,000 Per Year