What retirement benefit is a fixed monthly payment from an employer after retirement, based on salary and years worked, usually managed by the employer?

• A. Pension
• B. Social Security
• C. 401(k)
• D. 403(b)

Answer: (A)

A pension is a fixed monthly retirement payment provided by an employer based on your salary and years of service. It’s a defined-benefit plan, meaning the payout is determined by a formula and is guaranteed for life, funded and managed by the employer. This guarantees a steady, predictable income after retirement.

Social Security, by contrast, is a government program funded through payroll taxes; benefits depend on your earnings history and other factors, not a fixed employer promise. 401(k) and 403(b) plans are defined-contribution plans where you and your employer contribute, and the retirement income depends on how much was saved and how investments performed—there’s no guaranteed fixed monthly payment managed by the employer after you retire.