Erin knows exactly what benefits she will receive when she retires.She has worked for the same 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.

Question

Quizplus · Accepted Answer

A defined benefit plan is a retirement plan where an employer promises to pay a specified retirement benefit to employees, based on a specific formula, typically taking into account salary history and years of service. Erin's retirement plan matches this description, as she will receive 65% of the average of her two highest years of pay.

Erin Knows Exactly What Benefits She Will Receive When She