Definitions for "Defined Benefit Pension Plan"
A pension plan that specifies the benefits that the plan promises to pay to a participant upon retirement, with the benefits determined according to a specified formula. Contrast with defined contribution pension plan.----------[ Back
a Defined Benefit Pension Plan is characterized primarily by a formula under which retirement (and other) pension benefits are calculated. The amount of the pension benefit is typically based on earnings and credited pensionable service. (See Defined Contribution Pension Plan)
A benefit Plan which provides you a known, guaranteed benefit at retirement based on a formula which typically includes a set dollar amount for each year of service