Under a ______ the retiree knows exactly what they are going to receive in benefits when they retire.
A) undefined benefit plan
B) undefined contribution plan
C) defined benefit plan
D) defined contribution plan

Question

Quizplus · Accepted Answer

A defined benefit plan is a retirement plan where the employer guarantees a certain benefit amount to the employee upon retirement, based on a specific formula. This means the retiree knows exactly what they will receive in benefits, regardless of market fluctuations or other factors. Conversely, under an undefined benefit plan or defined contribution plan, the retiree's benefits are not guaranteed and may vary based on the performance of the plan's investments.

Under a ______ the Retiree Knows Exactly What They Are