George retired from a tire manufacturing company after 35 years.He has a union-negotiated defined-benefit plan.Even with the economic downturn,George still receives the same amount of pension every month.

Question

Quizplus · Accepted Answer

Defined-benefit plans provide a fixed, guaranteed amount of pension income for retirees, regardless of market conditions or economic downturns. Therefore, George will receive the same amount of pension every month, regardless of the economic downturn.

George Retired from a Tire Manufacturing Company After 35 Years