An employer's promise to pay employees a fixed amount each year at retirement. Regardless of the rate of inflation, employees will receive a pre-determined amount.
A retirement plan sponsored by your employer in which the benefits you receive at retirement are clearly defined and are not based on the amount you and/or your employer have contributed.
A qualified retirement plan that specifies the benefit a participant will receive at retirement, commonly expressed as a percentage of pre-retirement compensation.
a broad-based plan, meaning all eligible employees can participate
a retirement plan in which the amount of retirement payments a member receives is based on a predetermined formula
a traditional pension plan usually paid for by your employer
Plan that promises to pay a specified amount to each person who retires after a set number of years of service. Such plans pay no taxes on their investments. Employees contribute to them in some cases; in others, all contributions are made by the employer.
A pension plan under which the benefit the employee is to receive in the future is predetermined. (Example: $10 per month income at retirement for each year employed.) The amount of the required annual employer contributions depends on the level of benefits to be provided and the estimated number of years in the accumulation period.
Traditional US pension plans, where the employer runs a retirement fund for all of its employees (or a few retirement funds for groups of employees). This plans is akin to European company pension funds, in that an employee will be eligible for a defined-benefit pension once vested (generally after reaching a certain age and so many years of service). ADRs can be included in defined-benefit plans.
a pension plan in which a client is guaranteed (by the employer) a certain amount of money at retirement.
a pension plan in which the employer guarantees the client a certain sum of money at retirement
Pension plan in which an employee is promised a pension amount based on age and service.
A pension plan obliging the sponsor to make specified dollar payments to qualifying employees. The pension obligations are effectively the debt obligation of the plan sponsor. Sometimes referred to as a "fixed-benefit" plan. Related: Defined Contribution Plan.
An employee's benefits are defined, either as a fixed amount or a percentage of the beneficiary's salary at the time of retirement. Pension plans, Health and Welfare plans, and some Keogh plans are established as defined benefit plans.
