Retirement pension plans, also called "defined benefits" plans, traditionally are set as a fixed income per year at retirement. What are some characteristics of a pension plan? Select all that apply: An inflation rate of just 1% to 2% per year can decrease the buying power on an individual's fixed income. Pensions accrue interest that keep up with the inflation rate. A pension does not keep up with inflation and buying power is lost over time. The employer and employee contribute to the pension account during the working years and the funds are invested in a wide range of investment vehicles