User:Rebecca E. Harvey/Defined benefit pension plan: Difference between revisions
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''' | A '''defined benefit pension plan''' is a type of retirement plan in which an employer allocates specific amounts for ''vested'' employees in a tax deferred account.<ref>http://www.businessdictionary.com/definition/defined-benefit-plan.html</ref> The plan is "defined" because the formula for calculating the amount contributed by an employer is known in advance. Differing from a [[defined contribution plan]], the benefits a retiree receives from a defined benefit plan (commonly referred to as a ''DB plan'') are not dependent on the success or failure of the portfolio in which the employer's contributions are invested.<ref>http://financial-dictionary.thefreedictionary.com/Defined-Benefit+Plan</ref> This distinction places the entire liability of economic market flucuations and the particular portfolio's performance on the employer (or the ''plan sponsor''). | ||
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==Types of defined benefit plans== | ==Types of defined benefit plans== | ||
[[Scotland|Scottish]] | |||
===Flat benefit plan=== | ===Flat benefit plan=== | ||
===Unit benefit plan=== | ===Unit benefit plan=== | ||
Revision as of 06:07, 29 October 2010
A defined benefit pension plan is a type of retirement plan in which an employer allocates specific amounts for vested employees in a tax deferred account.[1] The plan is "defined" because the formula for calculating the amount contributed by an employer is known in advance. Differing from a defined contribution plan, the benefits a retiree receives from a defined benefit plan (commonly referred to as a DB plan) are not dependent on the success or failure of the portfolio in which the employer's contributions are invested.[2] This distinction places the entire liability of economic market flucuations and the particular portfolio's performance on the employer (or the plan sponsor).
Calculation of defined benefit pension plans
Types of defined benefit plans
Flat benefit plan
Unit benefit plan
Variable benefit plan
article and before a bibliography.[3] in the text by using [3]
Types of payouts available
Management of defined benefit plans
Federal retirement laws
Investment strategies
Benefits
Criticisms
Related pension plans
Cash Balance Plan
Money Purchase Plan
References
- ↑ http://www.businessdictionary.com/definition/defined-benefit-plan.html
- ↑ http://financial-dictionary.thefreedictionary.com/Defined-Benefit+Plan
- ↑ 3.0 3.1 Chicago Manual of Style, 14th ed., Part 1, see section 1.82, "Back Matter." This edition of the Chicago Manual of Style discusses the construction of a "book."