Defined Benefit Plan - AutomatedPensions.com
Defined Benefit Plan
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Updated: 15/Jun/06 09:09:01
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Defined Benefit Plan

A retirement plan that promises future benefits at retirement based on a formula, such as 50% of pay starting at age 65. Contributions are determined using Actuarial methods in order to provide the assets to pay the future benefits.

Sometimes a Defined Benefit Plan is defined as "not a Defined Contribution Plan " in that it does not maintain individual account balances for each participant.

See full article on Defined Benefit Plans.