Final answer:
A defined benefit retirement plan is a type of pension plan in which an employer promises to pay a specific, fixed amount of money to retired employees. The plan's characteristics include a fixed pension amount and the employer assuming the investment risk. Employee contributions and market fluctuations are not characteristic of defined benefit plans.
Step-by-step explanation:
A defined benefit retirement plan is a type of pension plan in which an employer promises to pay a specific, fixed amount of money to retired employees. The plan's characteristics include a fixed pension amount, which means that the retiree will receive the same amount of money each month as determined by the plan. The plan also has the employer assuming the investment risk, meaning that it is responsible for ensuring that there are sufficient funds to pay the promised benefits.
Employee contributions are not a characteristic of defined benefit plans. In this type of plan, the employer is responsible for funding the benefits, and employees do not make contributions towards their retirement. Finally, market fluctuations refer to the changes in the value of investments held by the plan. In a defined benefit plan, the employer bears the risk of market fluctuations, as it is obligated to pay the promised benefits regardless of how the plan's investments perform in the market.