A defined benefit plan is a type of retirement plan in which an employer promises to pay an employee a specified amount of retirement income based on a formula that typically considers the employee’s salary, years of service, and age at retirement. The employer is responsible for funding the plan and assumes the investment risk.

A defined benefit plan is a type of retirement plan in which an employer promises to pay an employee a specified amount of retirement income based on a formula that typically considers the employee’s salary, years of service, and age at retirement. The employer is responsible for funding the plan and assumes the investment risk.