Defined Benefit Pension Plan

A Defined Benefit Pension Plan is a retirement savings plan where an employer guarantees employees a specific pension amount based on factors like salary and years of service. When employees retire, they receive regular, predictable payments, providing financial stability. The employer is responsible for managing the plan and ensuring there are enough funds to pay these benefits. Essentially, it’s a promise of a fixed, ongoing income after retirement, offering security and predictability for employees planning their future.