Which of the following describes defined benefit pension plans?

Answer:

a The investment risk is borne by the employee.

b The plans are simple and easy to construct.

c The investment risk is borne by the employer.

d Retirement benefits depend on the individual's account balance.

The correct answer is letter "C": The investment risk is borne by the employer.

Explanation:

In a defined pension plan workers' retirement benefits are calculated by a formula that takes into account the years of service into the company and their salary history. Opposed to a defined contribution plan, part of the salary of the worker is not deducted to be sent to the fund. Instead, it is funded entirely by the employer sponsor of the plan and is the employer the one that manages the fund investment.

In that sense, option letter "C" is correct since it states that the investment risk is managed by the employer.