If an employee has a retirement savings account,the employer promises to pay a monthly sum to the account,ordinarily based on the employee's length of service and final salary at the date of retirement.

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The description provided refers to a defined benefit pension plan, where the employer promises a specific monthly benefit at retirement, not a retirement savings account, which typically involves contributions to an account without guaranteed future benefits based on salary and service length.

If an Employee Has a Retirement Savings Account,the Employer Promises