26. Which of the following is not a characteristic of a defined-contribution pension plan? a. b. c. d. The employer's contribution each period is based on a formula. The benefits to be received by employees are usually determined by an employee's three highest years of salary defined by the terms of the plan. The accounting for a defined-contribution plan is straightforward and uncomplicated. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee