An employer wishes to establish a defined-benefit pension plan to reward his employees. Under which defined-benefit formula does the following statement applies to? "Each plan participant will receive an annual pension commencing at normal retirement date and paid in the form of a life annuity equal to 2% of final average annual salary multiplied by the participant's years of service." A. Flat-amount. B. Flat-amount-per-year-of-service. C. Unit-benefit. D. Flat-percentage-of-earnings.
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