Benefit-Based Pension Plan

Benefit-Based Pension Plan

A pension plan in which the payer (usually a company) guarantees it will pay the agreed-upon benefits, regardless of any circumstances like reduced profits or even bankruptcy.
References in periodicals archive ?
When this benefit-based pension plan was renegotiated in 1998 and replaced with a defined-contribution pension plan, his retirement age was raised from 55 to 58 years.