An example of a type of plan where the amount the employee receives at retirement is dependent on investment return is a

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In a defined contribution plan, the contribution is defined, but the benefit received upon retirement is dependent on the investment returns generated by the plan. The employer contributes a specified amount to the plan, and the employee may also contribute to the plan. The contributions are then invested in a portfolio of investments selected by the employee, such as mutual funds or stocks. The final benefit amount at retirement is dependent on the performance of the underlying investments. Therefore, the amount the employee receives at retirement is dependent on investment returns, making a defined contribution plan the correct choice. Defined benefit plans (B) provide a set amount of retirement income based on a formula that takes into account factors such as salary and years of service. Cash balance plans (C) are a type of defined benefit plan where the employer contributes a set percentage of salary that is credited with interest and provides a lump sum benefit at retirement, but the investment risk is borne by the employer.

An Example of a Type of Plan Where the Amount