A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed

A) funded
B) unfunded
C) defined benefit
D) defined contribution

Defined Contribution

A type of retirement plan where the employer, employee, or both make contributions on a regular basis, but the final benefits received depend on the investment's performance.

Defined Benefit

A type of pension plan where the benefits that an employee will receive upon retirement are predefined based on factors like salary and tenure.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.