Which of the following plans is a promise from the employer that the employee will receive a certain amount of income replacement at retirement?
A)Cash balance plan
B)Profit-sharing plan
C)Money purchase plan
D)Deferred profit-sharing plan
E)Traditional defined benefit plan

Question

Quizplus · Accepted Answer

Traditional defined benefit plans promise employees a specific benefit at retirement, typically based on factors such as salary history and years of service. This contrasts with plans that are based on contributions and investment returns, where the retirement income depends on the performance of the investments.

Which of the Following Plans Is a Promise from the Employer