The correct answer is: A. Defined Benefit type
A defined benefit pension is a pension in which the employer promises to pay a specified monthly benefit at retirement, usually based on the employee’s salary and years of service. The employer bears the investment risk, and the pension is guaranteed by the employer.
A defined contribution pension is a pension in which the employer and employee contribute to a fund, and the employee bears the investment risk. The amount of the pension at retirement is based on the amount of money in the fund at retirement, plus any investment earnings.
Both defined benefit and defined contribution pensions are types of occupational pensions, which are pensions that are provided by an employer.
Defined benefit pensions are becoming less common, as they are more expensive for employers to provide. Defined contribution pensions are becoming more common, as they are less expensive for employers to provide and they shift the investment risk to the employee.