Which of the following describes a Money Purchase Pension Plan?

A Money Purchase Pension Plan is characterized by the employer making fixed contributions to the plan based on a set percentage of each employee's salary on an annual basis. This means that regardless of the plan's investment performance, the employer is obligated to make these contributions as stipulated in the plan agreements.

In this type of plan, the retirement benefit an employee will ultimately receive is based on the amount contributed and the investment performance of those contributions over time, rather than a guaranteed benefit amount. This structure contrasts with defined benefit plans, which provide specific retirement benefits irrespective of contribution rates or investment outcomes.

The remaining options describe features not typical of Money Purchase Pension Plans. For instance, the ability for employees to determine their own contribution rate is indicative of defined contribution plans rather than a Money Purchase Pension Plan. Additionally, while it is true that these plans can yield variable investment returns depending on market performance, the defining feature in this context is the fixed employer contribution, thus reinforcing why the first option accurately describes the plan.