Defined Benefit Plan

Business, Legal & Accounting Glossary

Definition: Defined Benefit Plan




Full Definition of Defined Benefit Plan


A type of pension plan that pays a definite, pre-determined amount of money when the worker retires or becomes disabled. The amount received is based on length of service with a particular employer. Most often, the monthly benefit is a fixed amount of money for each year of service. Payments under a defined benefit plan may also be calculated as a percentage of salary over the years.


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Defined Benefit Plan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/defined-benefit-plan-2/ (accessed: September 27, 2021).
American Psychological Association (APA):
Defined Benefit Plan. PayrollHeaven.com. Retrieved September 27, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/defined-benefit-plan-2/

Definition Sources


Definitions for Defined Benefit Plan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd April, 2020 | 1 Views.