defined benefit plan


defined benefit plan
A pension or other employee benefit plan that provides specified amounts of benefits to eligible participants. The specified amounts of benefits are usually determined based upon age, years of service, and/or levels of compensation. American Banker Glossary
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A pension plan obliging the sponsor to make specified dollar payments to qualifying employees at retirement. The pension obligations are effectively the debt obligation of the plan sponsor ( plan sponsors). Bloomberg Financial Dictionary

Financial and business terms. 2012.