Which term refers to a retirement plan that tells participants exactly how much money they will receive at retirement and is also known as a defined benefit plan?

Which term refers to a retirement plan that tells participants exactly how much money they will receive at retirement and is also known as a defined benefit plan?

• A. Defined Contribution Plan
• B. Defined Retirement Plan
• C. Delphi Technique
• D. Design Thinking

Answer: (B)

A plan that guarantees a specific retirement payout is a defined benefit plan. In this type of plan, the benefit is determined by a formula (often based on salary, years of service, and age), and the employer carries the investment risk to ensure that amount is paid out at retirement. That’s why it’s described as a defined amount the participant will receive, not something that depends on how investments perform. The term “Defined Retirement Plan” isn’t a standard label in HR practice, and the other options refer to approaches or concepts outside retirement plans (Delphi Technique and Design Thinking). So the term that best fits the description is a defined benefit plan.

A plan that guarantees a specific retirement payout is a defined benefit plan. In this type of plan, the benefit is determined by a formula (often based on salary, years of service, and age), and the employer carries the investment risk to ensure that amount is paid out at retirement. That’s why it’s described as a defined amount the participant will receive, not something that depends on how investments perform.

The term “Defined Retirement Plan” isn’t a standard label in HR practice, and the other options refer to approaches or concepts outside retirement plans (Delphi Technique and Design Thinking). So the term that best fits the description is a defined benefit plan.