Defined Benefit Employer-funded pension guaranteeing a specified retirement benefit. Introduction A Defined Benefit (DB) plan promises a predetermined retirement benefit, typically based on salary and years of service. Employers bear funding and investment risk, and payments are made as lifetime annuities to participants upon retirement. Definition A Defined Benefit plan provides retirees a fixed, formula-based pension payment. Benefit is commonly calculated using a benefit formula (e.g., final salary × years of service × accrual rate). The employer is legally responsible for funding. How it works Employers contribute to the plan and trustees manage investments to meet future obligations. Actuaries set assumptions (discount rate, mortality) to determine required contributions; shortfalls create employer funding obligations and may trigger remediation actions. Benefits A Defined Benefit plan provides predictable, formula-based retirement income for employees. Employers retain investment and longevity risk , while participants gain income security and often spousal survivor benefits. Employer funding Employers are legally responsible for making contributions to meet projected liabilities. Funding may require increased contributions after poor investment performance or actuarial losses. Conclusions A Defined Benefit plan delivers reliable retirement income but places funding and longevity risk on employers. Effective governance, prudent funding, and realistic actuarial assumptions are essential to maintain plan solvency and protect participants. THANKS! Do you have any questions? 📞 Phone: (480) 795-8256 📧 Email: info@saberpension.com 🌐 Website: https://saberpension.com