defined benefit plan investment & finance definition
A type of retirement plan that is committed to paying a specified amount to a recipient based on years of employment and annual salary.
A defined benefit plan is a type of employer-sponsored retirement plan. In a defined benefit plan, benefits are determined by a formula that indicates the amount an employee will receive upon retirement.
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What is a Defined Benefit Plan?
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Method used to determine a participant`s benefits in a defined benefit plan. Involves multiplying years of service by the percentage of salary.
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Defined Benefit Plan A type of pension plan where the employer determines the pension benefit (usually based on the employee's years of service and final salary with the employer).
Defined Benefit Plans See Defined Benefit Plan.
Defined benefit plans: A definite retirement income-usually paid as a monthly pension- and often a certain percentage of your salary before retirement.
Depreciation: A reduction in the value of your assets or investments.
Defined Benefit Plan
A defined benefit plan is a retirement plan offered by an employer. The defined benefit plan states what the ultimate benefit will be in advance.
Defined benefit plan
A pension plan obliging the sponsor to make specified dollar payments to qualifying employees. The pension obligations are effectively the debt obligation of the plan sponsor. Related: Defined contribution plan ...
Defined benefit plan: A corporate pension plan that guarantees a specific level of benefits for participants, usually based on levels of compensation and years of service. For example, an annuity purchased by the corporation for the employee.
Defined benefit plan
A defined benefit plan -- popularly known as a pension -- provides a specific benefit for retired employees, either as a lump sum or as income for the rest of their lives.
Defined benefit plan
A company retirement plan in which you expect to receive a fixed amount on a regular basis from your employer, i.e. a pension. The employer is responsible for investing.
Defined contribution plan ...
It is similar to defined benefit plan in that the annual contribution is determined by a formula to calculate the amount needed each year to accumulate (at an assumed interest rate) a fund sufficient to pay a projected retirement benefit, ...
defined benefit plan A company retirement plan whose terms are that an employee receives a specific... defined contribution plan A company retirement plan, such as a 401(k) or 403(b), allowing an employee...
Defined Benefit Plan
A pension plan that promises to pay employees a specified amount at retirement. The plan states either the benefits to be received by employees after retirement or the method of determining such benefits.
Qualified plans, such as profit sharing plans, defined benefit plans, money purchase pension or target benefit plans and 401(k) plans
2. SEP IRAs
3. SIMPLE IRAs
4. 403(b) plans
5. Qualified annuity plans
6.
The major difference between a cash-balance plan and more traditional defined benefit plans is that instead of receiving a portion of your final salary as your subsequent benefit, you accumulate a portion of your ongoing salary each year.
In defined benefit plans the employer makes a commitment to provide a specific, previously defined payment.
 See also: Benefit, Assets, Asset, Period, Earnings
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