Defined Benefit Plans financial definition of Defined Benefit Plans. Defined Benefit Plans finance term by the Free Online Dictionary.

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.

Defined-Benefit Plan

What Does Defined-Benefit Plan Mean?

An employer-sponsored retirement plan in which employee benefits are sorted out on the basis of a formula, using factors such as salary history and duration of employment. Investment risk and portfolio management are entirely under the control of the company. There are also restrictions on when and how an employee can withdraw funds without incurring penalties. Also known as a qualified benefit plan or nonqualified benefit plan.

Investopedia explains Defined-Benefit Plan

This type of fund is different from many pension funds in which payouts are somewhat dependent on the return of the invested funds. Therefore, employers sometimes need to dip into the company's earnings when the fund's investment returns result in a funding shortfall. The payouts made to retiring employees participating in defined-benefit plans are determined by factors such as age and length of employment. A tax-qualified benefit plan has the same characteristics as a defined-benefit plan but can provide the beneficiary of the plan with added tax incentives, which are not afforded under nonqualified plans.

Related Terms:
• Defined-Contribution Plan
• Inflation
• Mutual Fund
• Net Worth
• Tax Deferred

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Allocated Benefits annuity Cash Balance Plan Defined Benefit Plan Defined Contribution Plan Defined-Benefit Pension Plan Defined-Contribution Plan Employer Sponsored Retirement Plan Fixed Annuity Flat benefit formula Keogh Plan Money Purchase Plan Pension Pension Shortfall Plano de pensao com prestacoes diferidas Portable Benefits Qualified Plan Qualified Retirement Plan Summary Plan Description	In 2004, as the corporate drive to freeze defined benefit plans was gathering speed, only 45, or 7. Pension plan freezes increasing by Risk & Insurance The better argument against defined benefit plans is that they are very expensive for a company and are not as efficient when workforces ebb and flow. A Guide to Defined Benefit Pension Plans by Chris Tomkins / Finance and Investment community The book is divided into four sections: Justification for the Employer-Based System, Getting Defined Benefit Plans Ready for the Future, Ways to Improve Defined Contribution Plans, and lastly, Understanding the Political Dimensions of Pension Reform. The evolution of retirement plans by Butler, Amy / Monthly Labor Review	Deferred Payment Option deferred payments Deferred Premium Option Deferred Profit Sharing Plan Deferred Sales Charge Deferred strike option Deferred Tax Expense Deferred-Interest Bond deficiency Deficiency Agreement Deficiency Dividend deficiency judgment Deficiency Letter Deficit Deficit comercial Deficit de recursos Deficit estructural Deficit estrutural deficit financing Deficit Net Worth Deficit Reduction Act of 1984 Deficit Spending Deficit structurel Defined Asset Fund Defined Benefit Plan Defined Benefit Plans Defined Contribution Plan Defined event defined-asset fund Defined-Benefit Pension Plan Defined-Benefit Plan Defined-Contribution Pension Plan Defined-Contribution Plan definition of value Deflacion Deflacionador Deflactor Deflactor implicito de los precios Deflateur Deflateur implicite des prix Deflation Deflator Deflator implicito dos precos Degearing Deindustrialization Deinfed Contribution Plan Dejar de cotizar en bolsa Dekidaka Dekidaka Kajuu Heikin Kakaku Delai de grace Delayed Convertible	Define, Measure, Analyze, Design, Verify Define, Measure, Analyze, Improve, Control Define, Measure, Analyze, Improve, Control and Leverage Define, Measure, Analyze, Improve, Control, and Sustain Define, Measure, Analyze, Lean, Control Define, Measure, Explore, Develop and Implement Define, Observe, Record, Intervene, Test, Evaluate Define/Measure/Analyze/Develop/Deliver defined defined Defined and undefined Defined and undefined Defined asset fund Defined Asset Funds Defined Beauty Defined benefit Defined benefit Defined benefit Defined benefit Defined benefit Defined Benefit Fund Defined Benefit Obligation Defined Benefit Pension Plan Defined Benefit Pension Plan Defined Benefit Pension Plans Defined benefit plan Defined benefit plan Defined benefit plan Defined benefit plan Defined benefit plan Defined Benefit Plans Defined Benefit/Defined Contribution Defined Consulting Group Defined Context Set Defined contribution Defined contribution Defined contribution Defined contribution Defined contribution Defined Contribution Health Plan Defined Contribution Investment Only Defined Contribution Pension Plan Defined Contribution Pension Plan Defined Contribution Pension Plans Defined contribution plan Defined contribution plan Defined contribution plan Defined contribution plan Defined contribution plan Defined Contribution Plans Defined Contribution Registered Pension Plan Defined Contribution Retirement Benefit Defined Contribution Scheme Defined Daily Dose Defined Death Defined Display Area Defined event Defined Forest Area Management defined formula diet Defined Friendship Defined Input Sequence

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Allocated Benefits
annuity
Cash Balance Plan
Defined Benefit Plan
Defined Contribution Plan
Defined-Benefit Pension Plan
Defined-Contribution Plan
Employer Sponsored Retirement Plan
Fixed Annuity
Flat benefit formula
Keogh Plan
Money Purchase Plan
Pension
Pension Shortfall
Plano de pensao com prestacoes diferidas
Portable Benefits
Qualified Plan
Qualified Retirement Plan
Summary Plan Description

In 2004, as the corporate drive to freeze defined benefit plans was gathering speed, only 45, or 7.

Pension plan freezes increasing by Risk & Insurance

The better argument against defined benefit plans is that they are very expensive for a company and are not as efficient when workforces ebb and flow.

A Guide to Defined Benefit Pension Plans by Chris Tomkins / Finance and Investment community

The book is divided into four sections: Justification for the Employer-Based System, Getting Defined Benefit Plans Ready for the Future, Ways to Improve Defined Contribution Plans, and lastly, Understanding the Political Dimensions of Pension Reform.

The evolution of retirement plans by Butler, Amy / Monthly Labor Review

Deferred Payment Option

deferred payments

Deferred Premium Option

Deferred Profit Sharing Plan

Deferred Sales Charge

Deferred strike option

Deferred Tax Expense

Deferred-Interest Bond

deficiency

Deficiency Agreement

Deficiency Dividend