What is Defined Benefit Plan? | Meaning & Definition | Akrivia HCM

Defined Benefit Plan (DBP) is a kind of retirement plan where the employer promises to pay an employee a guaranteed amount of money upon retirement based on service periods and final salary. DBPs are often called “Final Salary” plans. The advantage of this benefit to the employee is that the benefit payments will be more predictable, especially for retirees with long careers, due to many plan member contributions and accruals under the plan.

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