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The executive team at Fresh Munchables would like to include retirement benefits in their compensation model. They understand that proper retirement planning is becoming increasingly vital based on concerns surrounding social security. After looking at various alternatives, they have decided to provide their employees with select retirement benefits.
The benefits plan they choose to implement must (1) be cost-effective and (2) not require the company to set aside its own money to fund it.
Based on this information, which type of plan will best meet their strategy needs?
-A defined bonus plan: an incentive offered by organizations to employees who fulfill certain requirements or who have performed noteworthy tasks
-A defined benefit plan: a formula to calculate how much pension an employee has earned and how much the organization will pay the employee throughout retirement
-A defined constituent plan: a formula to calculate how much value an employee has contributed, and will continue to contribute, to the organization's success
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