Defined Benefit Plan A type of pension plan that promises a specific benefit upon retirement.
DEFINED BENEFIT PLAN - A type of retirement plan that specifies how much in benefits it will pay out to a retiree.
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defined benefit plan - A pension plan where the benefit payment is a definite, preset amount which may be based on length of service or calculated as a percentage of salary over the years.
Defined Benefit Plan
A defined benefit plan is an annuity which provides a specified benefit, usually a monthly payment for life, for each contributor. Accounts are not segregated as they are in a defined contribution plan.
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Before the Pension Protection Act (PPA), a defined benefit plan maintained a "funding standard account", which was charged annually for the cost of benefits earned during the year and credited for employer contributions.
 See also: Will, Law, Plan, Service, Pension plan
  
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