The type of employer retirement plan in which the benefit is determined by a formula that generally includes the worker's average pay and the number of years worked for the company is called a ____ plan.

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A defined-benefit plan is a type of employer retirement plan where the benefit is determined by a formula that includes the worker's average pay and the number of years worked for the company. This is different from a defined-contribution plan where the benefit is based on the contributions made to the plan and the investment returns on those contributions. Contributory and noncontributory refer to whether the plan is funded solely by the employer or if the employee also contributes.

The Type of Employer Retirement Plan in Which the Benefit