In Canada, which plan stipulates benefits are pre-determined and based on a specific formula?

The correct answer is a Defined Benefit Plan, as this type of retirement plan specifies the benefits that an employee will receive upon retirement, calculated according to a predetermined formula. This formula typically considers factors such as salary history and years of service. The primary focus of a defined benefit plan is to guarantee a specific monthly benefit for the retired employee, which provides a level of financial security.

In contrast, a Defined Contribution Plan does not guarantee a specific benefit; instead, it is based on contributions made to the plan, which are then invested, and the final payout depends on the performance of those investments. A Flat Benefit Plan also does not revolve around a complex formula but rather provides a uniform benefit amount to all participants regardless of their salary or length of service. On the other hand, a Self-Directed Retirement Plan allows individuals to make their own investment decisions and manage their retirement funds, which does not align with the concept of pre-determined benefits based on a specific formula. Therefore, the defined benefit plan is the one that best fits the criteria described in the question.