InstituteAssociate Benefits & CompensationRetirement BenefitsUSADefined benefit planEnglishAnalysisFocus AreaCompliance and Exceptions (Level 2)Human Resources
Defined benefit plan
['Retirement Benefits']

- A defined benefit plan, or pension plan, promises a specified monthly benefit at retirement.
The plan may state this promised benefit as an exact dollar amount, or it may calculate a benefit through a plan formula that considers factors like salary and service. The benefits in most traditional defined benefit plans are protected, within certain limitations, by federal insurance provided through the Pension Benefit Guaranty Corporation.