defined benefit
Promised retirement income
A defined benefit is a retirement plan where the employer guarantees a specific payout upon retirement, typically calculated from salary history and years of service.
The employee knows what they'll receive; the employer bears the investment risk.
Contrast with defined contribution plans like 401(k)s, where employees contribute to accounts with uncertain future value.
She stayed twenty years to maximize her defined benefit pension.
Promised with certainty
- predictableAble to be foreseen
- fixed incomeStable recurring revenue
- reliableConsistently performing as expected
- assuredCertain or self-possessed
inflation protection · solvency · employer-sponsored · security · permanent · stable · enduring · risk-free
Periodic fixed payment
- vestingGaining full ownership
- pension fundPooled retirement investment
- ERISABenefits regulation abbreviation
- actuaryFinancial risk analyst
retiree · payout · lump sum · early retirement · retirement age · cost-of-living adjustment · fiduciary · pension rights
Legal or financial obligation
- fundedProvided with money
- accrualIncremental addition over time
- actuarialOf risk calculation
- contributionSomething given to help
deferred · vesting schedule · unfunded · underfunded · portability · forfeiture · service credit
guaranteed
Promised with certainty
- predictableAble to be foreseen
- fixed incomeStable recurring revenue
- reliableConsistently performing as expected
assured · inflation protection · solvency · employer-sponsored · security · permanent · stable · enduring · risk-free · protected
annuity
Periodic fixed payment
- vestingGaining full ownership
- pension fundPooled retirement investment
- ERISABenefits regulation abbreviation
actuary · retiree · payout · lump sum · early retirement · retirement age · cost-of-living adjustment · fiduciary · pension rights
liability
Legal or financial obligation
contribution · deferred · vesting schedule · unfunded · underfunded · portability · forfeiture · service credit
- retirementretirement, retire, retirement age, retirees, retirement income
- pension termsannuity, annuities, lump sum, pension fund, pension rights
- Retirement Incomepension, Social Security, 401k, IRA, annuity
- retirement plans401k, IRA, Roth IRA, 403b, annuity
- retirement savingsretirement savings, retirement funds, 403b, retirement account, retirement fund
- Retirement termspension, retired, annuity, 401(k), semi-retired
benefit, define, benefits, beneficial, defined, beneficiary, defining, defines, benefiting