Defined Benefit Plan, Definition(s) of

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“The traditional defined benefit plan provides a monthly income for the life of the participant (and spouse, unless the participant and spouse elect some other form of benefit). The amount of a monthly pension is determined by a formula which usually takes into account years of service and often pay. An example would be 1% of final average pay for each year of service” (United States Department of Labor, 2000).

Glossary Source: 

U.S. Department of Labor. (2000, November 14). Report of the working group on phased retirement. Retrieved May 18, 2005, from the U.S. Department of Labor Employee Benefits Security Administration website: http://www.dol.gov/ebsa