A _________ on retirement provides a stipulated, fixed amount of income, usually paid monthly.

Question

Quizplus · Accepted Answer

Defined benefit plan is a retirement plan that provides a fixed, predetermined benefit to retired employees. The amount of the benefit is usually based on the employee's salary, years of service, and other factors. The employer bears the investment risk and guarantees a specific payout to the employee when they retire. This is different from a defined contribution plan, like a 401(k), where the employee bears the investment risk and the retirement benefit is dependent on the performance of the invested funds. A cash balance plan is a hybrid of both defined benefit and defined contribution plans. A pension benefit is another term for a defined benefit plan.

A _________ on Retirement Provides a Stipulated, Fixed Amount of Income