DEFINED-BENEFIT PLAN
A retirement plan that is sponsored by the employer where the benefits of the employees are sorted based on a formula that use factors like salary history and duration of employment.
Investment risk and portfolio management are entirely under the control of the company. There are also restrictions on when and how you can withdraw these funds without penalties. This fund is different from many pension funds where payouts are somewhat dependent on the return of the invested funds. The payouts made to retiring employees participating in defined-benefit plans are determined by more personalized factors, like length of employment.
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