What will the target benefit plan provide Frank upon retirement?

A target benefit plan is a type of defined benefit pension plan that aims to provide a predetermined benefit amount at retirement, which is based on a formula that typically takes into account factors like the employee's salary and years of service. However, these plans are often designed to provide income in a manner that considers the age and service of the individual, which aligns with the age-weighted nature mentioned in the correct choice.

This age-weighted aspect means that contributions may be allocated differently based on the employee's age, which can create a more equitable distribution of retirement benefits, especially for employees who are closer to retirement age. It ensures that individuals who are further along in their careers and therefore closer to retirement receive a larger share of the plan's benefits, addressing the direct needs of those individuals as they prepare for retirement.

While a target benefit plan sets a target benefit, the actual amount provided upon retirement may vary based on investment performance and other factors, so it doesn't guarantee a fixed payout or that it will cover the entire retirement needs. Instead, it focuses on providing income support tailored to the participant's age and service, leading to a more personalized retirement preparation approach.