MOD $5-59$: A defined benefit pension plan typically calculates an employee$$s retirement benefit based on

the amount of money contributed into an individual retirement account and the performance of the selected investment vehicles.

a fixed formula that takes into consideration the employee$$s final pay, length of covered service and age at retirement.

the average number of years of service among a group of employees accumulate as of

December $31$ of each calendar year.

the age of the employee at the time they were hired.