Business / Taxes / Defined Benefit Plan: A defined benefit plan — popularly known as a pension — provides a specific benefit for retired employees, either as a lump sum or as income for the rest of their lives. Sometimes the employee's spouse receives the benefit for life as well. The pension amount usually depends on the employee's age at retirement, final salary, and the number of years on the job. All the details are spelled out in the plan. However, an employer may end its defined benefit plan or replace this traditional source of retirement income with defined contribution or cash balance plans.
Benefit Noun Synonyms: advantage, profit, good, sake, gain, aid, help, service
Benefit Verb Synonyms: improve, aid, help, better, promote, further, advance, forward
Plan Noun Synonyms: design, layout, blueprint, scheme, method, procedure, system, arrangement, programme, project, formula, pattern, script, scenario
Business / Taxes / Portable Benefits: Benefits or accumulated assets that you can take with you when you leave your employer or switch jobs are described as portable. For instance, if you contribute to a 401(k), 403(b), 457, or other defi MORE
Business / Taxes / Employer Sponsored Retirement Plan: Employers may offer their employees either defined benefit or defined contribution retirement plans, or they may make both types of plans available. Any employer may offer a defined benefit plan, but MORE