Retirement accounts that are fully paid for by the employer are called
A) defined benefit pension plans
B) 401(k) retirement accounts
C) 403(b) retirement accounts
D) individual retirement arrangements

Question

Quizplus · Accepted Answer

Defined benefit pension plans are retirement accounts that are fully paid for by the employer. These plans provide a specified monthly benefit to the employee at retirement, based on a formula that takes into account their years of service and salary history. Unlike other retirement accounts, the investment risk and responsibility is on the employer, not the employee.

Retirement Accounts That Are Fully Paid for by the Employer