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Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan is most likely classified as ________.

Answer :

Answer:

non-contributory or defined benefit

Explanation:

Non - contributory pension plan -

It is the retirement plan for which the funds are contributed by the employer and the government , and not by the employees , is known as non - contributory pension plan .

It is also known as defined benefit .

Hence , from the question ,

The correct term for the given statement is non-contributory or defined benefit .

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