Final answer:
An annuity for employees of specific public schools and non-profit organizations is known as a 403(b) plan, which is a type of defined contribution plan that is tax-deferred and portable with potentially inflation-resistant returns.
Step-by-step explanation:
An annuity that provides retirement income for employees of certain public schools and certain non-profit organizations is a 403(b) plan. Unlike traditional pension plans, more modern defined contribution plans such as the 401(k) and 403(b) are increasingly common.
In these arrangements, the employer and employee both typically contribute a fixed amount regularly into the retirement account. The funds in these accounts are invested and grow tax-deferred, offering the advantage of portability if an employee changes jobs.
High levels of real rates of return on these investments also help retirees to not be affected by inflation as much as with traditional pensions.