Which statement is true concerning employers suitable for a defined benefit pension plan?

A defined benefit pension plan is designed to provide employees with a guaranteed income in retirement, which is calculated based on factors such as salary history and years of service. Employers that adopt this type of plan typically opt for guaranteed benefit levels because it allows them to offer a secure retirement income to their employees, which can be a valuable tool for attracting and retaining talent.

Having guaranteed benefits helps employees feel more secure about their financial future, which is a crucial incentive for loyalty and productivity. Additionally, when employers commit to providing these benefits, they engage in a long-term investment strategy to fund the promised pensions, which reflects their dedication to employee welfare.

Other options either misrepresent the characteristics or goals of employers regarding defined benefit plans or focus on aspects that are not primary objectives of such pension structures. For instance, employers generally prefer fixed commitments rather than non-guaranteed benefits as the latter could create uncertainty for both the plan sponsor and the employees.