A company instituted an IRS approved plan to contribute monies to a plan that would pay each employee a percentage of his or her highest year of salary for each year of service upon termination of services.This plan is a

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This plan is a defined benefit pension plan as it promises a specific benefit amount to each employee based on a formula that takes into account their highest year of salary and years of service. This is in contrast to a defined contribution pension plan where the amount contributed is fixed and the benefit received depends on the performance of the investments.

A Company Instituted an IRS Approved Plan to Contribute Monies