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Jane is offered a pension plan through her employer. The plan agrees that if she will deposit 6% of ...

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Jane is offered a pension plan through her employer. The plan agrees that if she will deposit 6% of ...

Jane is offered a pension plan through her employer. The plan agrees that if she will deposit 6% of her salary to a retirement account, the employer will deposit a matching amount. When Jane retires, whatever money is in the account will belong to her. What is the proper name for this type of pension plan?
A) A vested pension plan
B) A defined contribution plan
C) A defined benefit plan
D) A tax-deferred savings plan (401(k))

Textbook

Introduction to Risk Management and Insurance

Edition: 10^th

Authors: Dorfman, Cather

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