The type of private pension plan in which an employer promises to pay a retiree a stated pension is a:

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In a defined-benefit plan, the employer bears the investment risk and promises to pay a stated pension amount to the employee upon retirement, based on factors such as salary and years of service. This is different from a defined-contribution plan, where the employer's contributions are predetermined, but the ultimate value of the pension is subject to market fluctuations.

The Type of Private Pension Plan in Which an Employer