A defined benefit plan is a type of retirement plan that promises a set payment at a regular frequency after the employee retires. Employers calculate the benefits allocated to each worker based on salary, age, and length of employment., A defined benefit plan is a retirement plan by which employers provide guaranteed retirement benefits to employees based on a set formula. These plans, often referred to as pension plans, have become less and less common in recent decades. This decline is especially pronounced in the private sector, where more and more employers have shifted to defined contribution plans, like a 401 (k). There , A defined benefit plan, more commonly known as a pension, offers guaranteed retirement benefits for employees. Defined benefit plans are largely funded by employers, with retirement payouts based , Defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum, or combination thereof on retirement that depends on an employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of , What Is a Defined Benefit Plan? Often referred to as pensions, defined benefit plans provide guaranteed payments in retirement., Learn how a defined benefit plan works, how it differs from other retirement plans, and why you might want to use one for your retirement savings..