Legal Dictionary of Pakistan

defined-benefit plan

A plan established and maintained by an employer primarily to provide systematically for the payment of definitely determinable benefits to employees over a period of years, usu. for life, after retirement. ( Retirement benefits under a defined-benefit plan are measured by and based on various factors such as years of service rendered and compensation earned. The amount of benefits and the employer's contributions do not depend on the employer's profits. The employer has the entire investment risk, and must cover any funding shortfall. Any plan that is not a definedcontribution plan is a defined-benefit plan. 29 USCA § 1002(35). Cf. defined-contribution plan.