What is a common similarity between executive retirement plans and broad-based plans?

The common similarity between executive retirement plans and broad-based plans is the form and manner of payment. This refers to how the benefits are paid out to participants upon retirement or when they become eligible for distributions. Both types of plans can utilize various payment structures, such as lump-sum distributions or annuity options, enabling participants to receive their benefits in a manner that suits their financial needs and planning goals.

Understanding that both executive and broad-based plans may offer similar payment forms is key in recognizing their shared aspects, even though they serve different purposes and demographics. This allows for more comparisons regarding how financial security is provided through different types of retirement benefits.

While the other options refer to important characteristics of retirement plans, they do not apply equally to both executive and broad-based plans. Investment options, vesting periods, and eligibility criteria may differ between the two, highlighting the distinct nature of these plans while the payment methods remain a commonality.