A pension plan that provides for a pension equal to 3 percent of an employee's average annual salary for each year of service is a defined benefit plan.

Name: A pension plan that provides for a pension equal to 3 percent of an employee's average annual salary for each year of service is a defined benefit plan.
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This statement is describing a defined benefit plan, as it specifies the formula for calculating the pension benefit based on the employee's years of service and average annual salary.

A Pension Plan That Provides for a Pension Equal to 3