Defined-Benefit Plan

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Also found in: Acronyms.

Defined-Benefit Plan

A retirement plan in which the retiree receives a set amount in benefits each month once he/she begins receiving benefits. That is, the benefits the retiree receives are not dependent on the performance of the portfolio in which the contributions are invested; the company sponsoring the plan assumes the entire liability. The amount of the benefit is determined according to some formula that usually accounts for the amount of contributions and the length of time the retiree worked for the company. The disadvantage to a defined-benefit plan, from the company's perspective, is the possibility that the investment portfolio will not perform as expected, forcing the company to make payments from its earnings, or, worse, to borrow money. See also: Defined-contribution plan.
References in periodicals archive ?
Given that limitation on the use of pension plan resources, an overall net pension liability for an agent multiple-employer defined benefit pension plan would not be meaningful, or could even be misleading.
Making this tool available to our pension clients helps them deal with one of their major challenges and underscores RBC Dexia's commitment to defined benefit pension plan sponsors.
Nearly 30 percent of uniformed employees who participated in a defined benefit pension plan had a terminal earnings formula flat rate of 2.
United's IAM members are the airline's only employees to successfully negotiate a defined benefit pension plan in bankruptcy, the multi-employer IAM National Pension Plan.
The improved health of the typical US defined benefit pension plan is due largely to the year's strong equity market returns, according to Aaron Meder, UBS Global Asset Management's Head of Asset Liability Investment Solutions in the Americas.
In TAM 9935062, the employer, whose fiscal year ended June 30, maintained a single-employer defined benefit pension plan.
has subpoenaed four banks for data on the defined benefit pension plan of Aloha's machinists union, the Associated Press reported.
These findings are from interviews with 147 CFOs and Managing Directors, of which 71, or 48 percent, have a defined benefit pension plan.
96-1, Application of Certain Pension Disclosure Requirements for Employers Pending Implementation of GASB Statement 27, is effective for fiscal years beginning after June 15, 1996, or as early as the date a defined benefit pension plan adopted GASB Statement no.
Controlled groups/other plans: The IRS SEP document may not be used (1) unless all members of a controlled or affiliated service group adopt the SEP, (2) if the employer currently maintains any qualified plan or (3) if the employer ever maintained a defined benefit pension plan.
Journal Register Company (NYSE:JRC) today announced that, effective January 1, 2007, the Company is introducing a new retirement plan and changing its defined benefit pension plan for non-union employees.
In 1993, the Supreme Court held that an employer's contribution of unencumbered property to a qualified defined benefit pension plan, in satisfaction of the employer's funding obligation, was a "sale or exchange" and, therefore, a prohibited transaction (Keystone Consolidated Industries, Inc.

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