What type of retirement plan provides the participant with a fixed benefit upon retirement?

Question

Quizplus · Accepted Answer

C)A defined benefit plan is a formal retirement plan that provides the participant with a fixed benefit on retirement.Although defined benefit formulas vary,they are typically based on the participant's final years' average salary and years of service.A defined contribution plan is a retirement plan that requires specific contributions by an employer to a retirement or savings fund established for the employee.

What Type of Retirement Plan Provides the Participant with a Fixed