Erin knows exactly what benefits she will receive when she retires.She has worked for the organization for 20 years and will receive 65% of the average of her two highest years of pay.Erin's retirement plan is a ________ plan.

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Erin's retirement plan is a defined benefit plan because she knows exactly what benefits she will receive when she retires, which is a percentage of the average of her two highest years of pay. In a defined benefit plan, the employer guarantees a certain retirement benefit to the employee based on factors such as years of service and salary history.

Erin Knows Exactly What Benefits She Will Receive When She