pension

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pension

(1) A regular payment plan intended to provide a person who retired from a job with a secure income for life.
(2) A monthly payment from a pension.
Segen's Medical Dictionary. © 2012 Farlex, Inc. All rights reserved.
References in periodicals archive ?
Defined benefit plans have been identified as the optimal pension plan because the associated risks lie mostly with the employer (Woodger, 2009).
With defined benefit plans, the employer manages mortality risk by spreading pension commitments across a population of employees with different life spans.
The bottom line to Stanley was that enhancing his retirement plan by adding a defined benefit plan decreased his combined federal and state income tax liability by over $35,000, approximately 40% of the contribution.
Defined benefit plans, as the name indicates, operate by setting a target benefit: the amount of a pension a given employee will receive in retirement.
Of course, defined benefit plans also have some investment fees, but these are small compared to those associated with defined contribution plans."
Early overfunding of the defined benefit plan is a factor in the long-term health of the plan.
* Although 18 percent of all private industry workers are currently covered by a defined benefit plan, the percentage varies with the industry.
As I noted earlier, advisers who work with defined benefit plans would be well-advised to take notice of these changes, to understand the consequences to their clients.
More than half of the companies in the survey with defined benefit plans said they have converted to hybrid plans.
In order to increase liquidity, many taxpayers elect to receive benefits in a lump sum or other accelerated form if the option is offered within their defined benefit plan. Currently, if two different options are chosen within the same plan, both the accelerated benefits and deferred annuity benefits will be subject to the IRC Section 417 minimum present value requirements.
By the same token, the job of the executive in charge of a company's 401(k) needs to become more like that of the CIO of a defined benefit plan, says Nieuwe Weme.
In a freeze, a company continues its defined benefit plan, but future accruals for some or all participants stop.

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