Which of the following describes a defined benefit plan?
A) Provides fixed income to the plan participants based on a formula.
B) Distribution amounts determined by employee and employer contributions.
C) Allows executives to defer income for a period of years.
D) Retirement account set up by an individual.

Question

Quizplus · Accepted Answer

Defined benefit plans pay a fixed income or benefit to the employee. This amount is usually based on the average income of the employee and the years of service. These plans are set up and funded by employers for employees.

Which of the Following Describes a Defined Benefit Plan