Defined-benefit plan

A defined-benefit plan is an employer-sponsored retirement plan where employee benefits are computed using a formula that considers several factors, such as length of employment and salary history. The company administers portfolio management and investment risk for the plan. There are also restrictions on when and by what method an employee can withdraw funds without penalties. Benefits paid are typically guaranteed for life and rise slightly to account for increased cost of living—Read more at Investopedia. Kagan, Julia. “Defined-Benefit Plan.” 30 June 2019