defined benefit pension plans

A defined benefit pension plan is a retirement plan where an employer guarantees a specific income to employees after they retire, based on factors like salary and years of service. The employer is responsible for funding the plan and managing the investments to ensure there's enough money to pay the promised benefits. Employees usually start receiving payments once they retire, providing them with financial security. Because the benefit amount is predetermined, employees know in advance what to expect, making it a predictable source of retirement income.