What does Defined Benefit Plan mean? Read on to discover the definition & meaning of the term Defined Benefit Plan - to help you better understand the language used in insurance policies.
Defined Benefit Plan
A pension plan providing a specific benefit for each employee. The employer is required to make adequate contributions to the plan to fund the promised benefits. No individual accounts are maintained as is done in defined contribution plans.
We hope the you have a better understanding of the meaning of Defined Benefit Plan.