You get a job with the Allred Corporation.Their retirement plan will pay you $250 a month for each year you work for the company commencing on your 65th birthday.You must work for the company for 10 years in order to qualify for the pension.This plan is a

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This is a defined-benefit plan because the retirement payments are based on a set formula determined by the company (i.e. $250/month for each year worked) rather than being based on the amount of contributions made to an investment account (as in a defined-contribution plan). The requirement to work 10 years to qualify for the pension is also typical of defined-benefit plans. Traditional IRAs and Keogh plans are types of retirement accounts, but neither is a type of pension plan.

You Get a Job with the Allred Corporation