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Pension plans administered through trusts are indeed characterized by their legal protection from creditors or employers. This means that the funds set aside in these pension trusts are generally safeguarded from being claimed by creditors in the event of bankruptcy or legal judgments against the employer. This protection ensures that the employees’ retirement benefits are preserved and not at risk due to the financial instability of the employer or any legal issues the employer may face.

Conversely, the other choices do not accurately represent the defining characteristics of pension plans administered through trusts. For instance, pension plans typically cannot be easily changed or revoked; they are designed as long-term savings vehicles with specific regulations governing them. While annual reporting to the IRS is a requirement for certain retirement plans, it is not a defining characteristic unique to pension plans administered through trusts. Similarly, these plans are primarily intended for retirement savings rather than for short-term financing needs. Understanding this crucial aspect of pension trusts is important for comprehending how they function within the broader scope of financial management and retirement planning.