Question

Erin knows exactly what benefits she will receive when she retires. She has worked for the organization for 20 years and will receive 65% of the average of her two highest years of pay. Erin’s retirement plan is a ________ plan.

Answer 1

defined benefit

Step-by-step explanation:

A defined benefit plan is a type of pension plan in which the employees continue to receive a specified amount of money from the company after retirement. This benefit plan is subject to tax deduction.

A defined benefit plan is calculated by the employees salary, age and the period of time the individual worked in the company.

A defined budget plan makes it easy for the individual to budget their various expenses during their retirement period.