Defined Benefit (DB) pensions

A Defined Benefit (DB) pension is a retirement plan where an employer guarantees a specific payout to employees upon retirement, often based on factors like salary and years of service. The employer is responsible for funding the plan and managing the investments needed to ensure the promised payments. Employees typically do not bear investment risks and receive regular, predetermined benefits, providing financial security in retirement. This contrasts with other plans where benefits depend on individual investment performance. DB pensions offer predictability and stability, making them a valuable pillar of retirement planning for eligible workers.