Final answer:
The question is about a 'defined contribution' pension plan where employers and employees contribute to the employee's retirement account, which is portable and potentially inflation-resistant.
Step-by-step explanation:
The student's question refers to a defined contribution pension or retirement plan, which provides an individual retirement account for each employee and no obligation for benefits exists beyond what is accumulated in each individual's account. This type of plan, such as 401(k)s and 403(b)s, involves a fixed employer contribution to the worker's retirement account regularly, often supplemented by the employee's own contribution. Such plans offer tax deferral, are portable across employers, and protect retirees from inflation-related losses by allowing investment in a variety of vehicles that can generate real rates of return.