Final Answer:
Both employee and employer. Thus option d is correct.
Step-by-step explanation:
Defined benefit plans are retirement plans where the ultimate benefit (usually a monthly amount) is defined by a set formula based on factors such as salary history and duration of employment. Contributions to these plans are typically made by both the employer and the employee.
The employer is primarily responsible for making contributions to ensure there's enough funding to provide the defined benefits promised to employees upon retirement. However, in some cases, employees might also make contributions, although it's less common compared to defined contribution plans where employees usually make contributions.
Employers bear the primary responsibility for funding defined benefit plans. They contribute a specific amount regularly, ensuring the plan has sufficient funds to meet the future pension obligations. Contributions are based on actuarial calculations, investment returns, and the number of employees covered by the plan. Employees may also make contributions in some cases, especially if the plan allows for voluntary or additional contributions beyond what the employer contributes.
The contributions made by both parties are essential to sustain the defined benefit plan and ensure that there are enough funds to pay out the specified benefits to employees when they retire. The combination of employer and employee contributions helps secure the financial stability of the plan, though the ratio or proportion of these contributions can vary based on plan terms, industry standards, and legal requirements.