defined benefit plan



Most common type of pension plan in which an employer sets aside specific sums of money (based on each employee's tenure of service, age, and salary) for qualifying employees, in a separate tax deferred account. It is 'defined' in the sense that the formula for computing the employer's contribution is known in advance. Also called career average benefit formula, career average formula, career earnings formula, or defined benefit pension plan.

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  • The defined benefit plan was adequate and thus a non factor in the continued negotiations with the brand new employer.

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  • When you are looking for a new career finding one with a strong defined benefit plan will give you great piece of mind.

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  • I decided to take the job because they offered a really good defined benefit plan that would ensure I have security in my life.

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