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    Question

    Which of the following is a type of pension plan where

    the employer agrees to pay a specified benefit to the employee upon retirement, based on a set formula?
    A Defined benefit plan Correct Answer Incorrect Answer
    B Defined contribution plan Correct Answer Incorrect Answer
    C Hybrid plan Correct Answer Incorrect Answer
    D Target benefit plan Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    A defined benefit plan is a type of pension plan where the employer agrees to pay a specified benefit to the employee upon retirement, based on a set formula. This formula typically takes into account the employee's length of service, salary history, and other factors.

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