An Employee Enrolls in a Pension Plan That Will Pay

Multiple Choice

An employee enrolls in a pension plan that will pay out 3% of the employee's average salary for the last 3 years for each year of service that the employee worked. What type of pension plan does the employee have?

A) Defined Contribution Plan.
B) Normal Payout Plan.
C) Defined Benefit Plan.
D) None of the above.