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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What is the funding status of corporate defined-benefit plans in Canada?
THE STATE OF CANADA'S DEFINED BENEFIT PENSION PLAN
While that's true, it is not necessarily a bad thing where defined-benefit plans are concerned, because slowing the rate of return can actually save on taxes in the long term and stabilize market volatility in the short term.
Using life insurance for tax reduction and asset preservation: defined-benefit plans can meet small business owners' needs
With just 13% of credit unions offering their employees defined-benefit plans, is a shift underway that could potentially open up the window for employers to increase participation?
Pension plan rebirth?
We may as well scrap defined-benefit plans because over time taxpayers will pay the same for public services either way.
How to slash the state
The median annual rate of return for defined-benefit plans averaged 10.13 percent compared with 9.06 percent for 401(k) plans from 1995 through 2007, according to consulting firm Towers Watson.
DB outperforms 401(k)
Fully insured, defined-benefit plans are unique in the retirement planning arena because they have a higher tax-deduction limit than most plans.
Defining benefits 412(e)(3) plans are attractive options for small businesses
This book examines how government policy makers can promote the financial security of occupational defined-benefit plans, particularly those financed by pension funds.
Protecting pensions; policy analysis and examples from OECD countries
* After 2007, the allowable deduction for contributions to defined-benefit plans is the greater of the minimum required contribution under the minimum funding standards or the sum of the funding target, the target normal cost, and the cushion amount for the plan year.
Tax planning with single-employer qualified plans
The Act establishes a standard for all defined-benefit plans that clarifies current law with respect to age discrimination under the Employee Retirement Income Security Act (ERISA) and removes the last impediments to adopting cash balance plans.
Retirement plan strategies: finding the right balance; Expert advice on the implications, pitfalls and opportunities offered by the Pension Protection Act of 2006 is summarized by Financial Executives Research Foundation (FERF)
To defend defined-benefit plans, NEA has built a Retirement Security Toolkit to help members understand the issues.
Secure retirement secured
"Risk may increase if large defined-benefit plans begin to struggle or fail, especially if the Pension Benefit Guaranty Corp.
Best practices in EBP audits: regulatory pressure is heating up the market
When will the public realize that companies can no longer afford defined-benefit plans and inevitably must switch to a defined-contributions plan?
When ...?

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