What type of retirement plan meets the objectives of requiring only an employer contribution of a fixed percentage, being administratively convenient, and avoiding PBGC participation?

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The retirement plan that meets the objectives of requiring only an employer contribution of a fixed percentage, being administratively convenient, and avoiding PBGC participation is indeed a money purchase pension plan.

A money purchase pension plan is characterized by the fact that the employer is required to make contributions based on a fixed percentage of employee compensation. This fixed contribution requirement provides predictability for both the employer's financial planning and for employees in terms of what they can expect in terms of retirement benefits. Moreover, the plan generally has less complex administration compared to other plans, making it easier for employers to manage.

Importantly, money purchase pension plans do not fall under the PBGC (Pension Benefit Guaranty Corporation) insurance requirements, unlike traditional defined benefit pension plans, which are subjected to PBGC regulations due to their structure. This aspect is significant for employers looking to minimize regulatory burden and financial risk associated with future pension payouts.

In contrast, while other options like a cash balance pension plan does offer some simplistic contributions, it does entail PBGC participation, which does not align with the objective of avoiding it. A traditional defined benefit pension plan involves benefits calculated via complex formulas and also requires PBGC participation. A Section 401(k) plan typically relies on employee contributions and may