A Defined Benefit (DB) Plan is a type of retirement pension plan in which an employer sponsored retirement plan for employee benefits that is a specified pension payment, lump-sum on retirement with predetermined by a formula based on how many years worked for an employer and the salary earned. The Defined Benefit (DB) plan is more costly for employers than the Defined Contribution (DC) plans, in general, Defined Benefit (DB) plans come in two varieties: traditional pensions and cash-balance plans. (Refer to the Pension Plan (or Scheme))

Related Definitions in the Project: The Commercial Definitions