Defined Benefit Plan

by lakemen » Sat Jul 08, 2006 05:41 am
Posts: 1260
Joined: 18 May 2005

Defined Benefit Plan

A retirement plan under which pension benefits are fixed in advance by a formula based generally on years of service to the company multiplied by a specific percentage of wages, usually average earnings over that period or highest average earnings over the final years with the company.

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