Defined-Benefit Plan

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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.

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Contributions to multiemployer defined benefit pension plans have been a mainstay, legacy feature of union negotiations in many industries.

Ebb and flow: P/C is quarter results: unions swim against the tide as pension issues surface

To many, the GE case embodies all that is wrong with accounting for defined benefit pension plans. GE reports a $2 billion dollar increase in income due to its pension plan, despite the fact that plan assets have lost more than 5% of their value.

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A pay-related, defined benefit pension plan specifies a determinable pension benefit for retirees based on age, years of service, and salary.

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Nearly 30 percent of uniformed employees who participated in a defined benefit pension plan had a terminal earnings formula flat rate of 2.5 percent of earnings or higher.

Police and firefighter pension plans

Summary of Cumulative Prediction Errors (in Percent) for the Sample of 137 Overfunded Defined Benefit Pension Plan Termination Events: 1975-1986.

Additional evidence on the reaction to shareholders to the reversion of surplus pension assets

is the infrastructure management arm of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada.

OMERS Infrastructure to Acquire Leeward Renewable Energy to Strengthen Ontario Pension Plan

23%: The percentage of North American defined benefit pension plan professionals who consider transferring plan liabilities to a third-party insurer this year.

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Said to include wage increases, improvements to benefits and maintenance of the defined benefit pension plan for current Air Canada workers, the agreement does not included defined benefit pension plan for new hires.

Air Canada's new deal gets approval from union leaders and workplace representatives

Under the defined benefit pension plan the employer guarantees a specified benefit at "normal retirement age." Based upon actuarial calculations the employer is required to maintain a level of "minimum funding" such as will assure that funds will be available to pay this guaranteed retirement benefit.

Defined benefit pension plan

The bankrupt carrier received permission to terminate its pilot defined benefit pension plan in September.

Airline Finance News - North America

Instead of a defined benefit pension plan where employees know what they get when they retire, the company is developing a time contribution plan.

Encourage employee feedback

R and J each maintained a defined benefit pension plan for their hourly workers; those plans were the products of collective bargaining with the steelworkers' union.

Payments to nonqualified trust that replaced terminated pension plans were not exempt from employment taxes