which of the following plans are guaranteed monthly payments employees receive from the time they retire until their death
Thrift saving plan
Pension plan
401k plan
403b plan
Pension plan
The plan that guarantees monthly payments to employees from the time they retire until their death is the Pension plan.
The plan that provides guaranteed monthly payments to employees from the time they retire until their death is a Pension Plan. To arrive at this answer, let's briefly explain each of the options:
1. Thrift Savings Plan (TSP): This is a retirement savings and investment plan for federal employees and members of the uniformed services. While it offers various investment options, it does not guarantee fixed monthly payments upon retirement.
2. Pension Plan: This plan is specifically designed to provide a retirement income for employees. It guarantees regular monthly payments to employees after retirement until their death. The amount of pension benefits depends on factors like years of service, salary history, and the plan's formula.
3. 401(k) Plan: This is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their salary on a pre-tax or after-tax basis. The account grows tax-deferred until retirement. However, 401(k) plans do not guarantee specific monthly payments but instead depend on the amount accumulated in the account and investment performance.
4. 403(b) Plan: Similar to a 401(k) plan, a 403(b) plan is specific to employees of public schools, nonprofit organizations, and certain religious organizations. It also allows employees to contribute a portion of their salary to the plan. Just like a 401(k) plan, a 403(b) plan does not provide guaranteed monthly payments but serves as a retirement savings vehicle.
Therefore, the only plan among the options that guarantees monthly payments from retirement until death is the Pension Plan.