Defined benefit plan definitionQuestion What is a defined benefit retirement plan?
Answer Defined benefits plans are pension plans in which benefits are fixed (and often projected) according to the employee's compensation, years of participation in the plan, and age upon retirement. Contributions are actuarially determined to provide sufficient funds to cover promised pension amounts.
This kind of plan was prominent in the 20th century and in many businesses have been replaced with the defined contribution plan. 
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
Related Categories: Accounting, Finance, Taxes, Financial Planning, Human Resources, Retirement And Exit Strategies
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