A pension plan in which retirement benefits are based on the accumulation of annual company contributions plus interest credited each year is called a(n) _____ plan.

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A cash balance plan is a type of defined contribution plan where an employee's retirement benefit is based on the accumulation of annual company contributions plus interest credited each year. The employee's benefit statement displays their account balance much like a 401(k), but the employer bears the risk if investment returns falter. Auto-enrollment refers to a feature of retirement plans that automatically enrolls eligible employees in the plan, while defined benefit plans provide a specific monthly benefit amount to employees based on their years of service and salary.

A Pension Plan in Which Retirement Benefits Are Based on the Accumulation