defined benefit plan

Definition of "defined benefit plan"
  1. A pension plan that guarantees a specific payment amount at retirement, which is determined by factors such as service length and average salary
How to use "defined benefit plan" in a sentence
  1. After many years of service, the employee looked forward to a comfortable retirement thanks to her defined benefit plan.
  2. The company offers a defined benefit plan that calculates retirement payout based on years of service and salary.
  3. John's defined benefit plan will ensure a consistent monthly income once he retires.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z