With a(n) ____ plan, contributions are dictated by the benefits that will eventually be provided.

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A defined-benefit plan is one in which the employer guarantees a certain level of retirement income based on a set formula that takes into account the employee's years of service and salary history. The contributions required to meet these future retirement benefits are determined by an actuary, based on projected investment returns and expected demographic trends. This is in contrast to a defined-contribution plan, such as a 401(k), where the contributions are set in advance and the eventual retirement benefits depend on the return earned on those contributions.

With A(n) ____ Plan, Contributions Are Dictated by the Benefits