defined benefit plan |
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Definition
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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defined benefit plan is in the Accounting & Auditing and HR, Teams, & Training subjects.
defined benefit plan appears in the definitions of the following terms: career average benefit formula, career average formula, defined contribution plan and defined benefit formula
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