Answer: defined-benefit pension plan.

## Explanation This question describes a **defined-benefit pension plan**. Here's why: ### Key Characteristics of Defined-Benefit Plans: 1. **Employer guarantees a specific benefit amount** upon retirement 2. **Payment obligation rests with the employer** - the company must make regular payments to retired employees 3. **Benefit formula is predetermined** - typically based on factors like years of service and final salary 4. **Investment risk is borne by the employer** - the company must ensure sufficient funds are available to meet future obligations ### Why Not the Other Options: - **A. Endowment**: An endowment is a donation of money or property to a non-profit organization, typically for a specific purpose. It's not related to employee retirement benefits. - **C. Defined-contribution pension plan**: In defined-contribution plans (like 401(k) plans), the employer contributes a defined amount to an employee's individual account, but there's no guarantee of specific benefit amounts at retirement. The employee bears the investment risk, and the employer has no obligation to make payments after retirement. ### Key Distinction: The phrase "obligation to pay a certain amount each month" clearly indicates a **defined-benefit plan**, where the employer promises specific retirement benefits and must fund those promises regardless of investment performance.

Author: LeetQuiz .