Results for tag: "Defined Benefit Plan"

A Defined Benefit Plan (DBP) is a type of pension plan in which an employer promises a specified pension payment, lump-sum or combination thereof on retirement. This payment is based on a formula that takes into account the employee's earnings history, length of service and age, rather than the investment performance of the plan's assets. DBPs are typically funded by the employer, who makes contributions to the plan on behalf of the employee. The DBP market is a large and important part of the pension industry. It is a key source of retirement income for many individuals, and is often used to supplement other retirement savings. DBPs are typically offered by employers as part of a comprehensive benefits package, and are often used to attract and retain employees. Some companies in the DBP market include Prudential Financial, MetLife, AIG, TIAA, Fidelity Investments, and Vanguard. Show Less Read more