Definitions for "Defined Benefit"
Retirement plan in which a definite formula is used to calculate an eligible participant's pension benefit. This plan is typically provided by an employer and does not require an employee's contribution.
funded by the employer, and provide a benefit that is determined by a formula that is spelled out in the plan. Usually, it involves compensation and years of service. Generally, the longer someone works under the same defined benefit plan, the larger the retirement benefit.
A fund where benefits are related by a formula to final salary. (As opposed to defined contribution or accumulation funds.)
Keywords:  provision, important
an important provision