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Insurance Definition: DEFINED BENEFIT PLAN

By Compuquotes Team on March 27th, 2008

DEFINED BENEFIT PLAN:

Definition:

  • A retirement plan under which pension benefits are fixed in advance by a formula based generally on years of service to the company multiplied by a specific percentage of wages, usually average earnings over that period or highest average earnings over the final years with the company.

Information provided by Insurance Information Institute

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