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A traditional defined benefit (DB) plan is a plan in which the benefit on retirement is determined by a set formula, rather than depending on investment returns. Government pensions such as Social Security in the United States are a type of defined benefit pension plan.
Definition. A savings and investment plan that provides income during retirement. It is often created by companies or the government for employees. A defined benefit plan and a defined contribution plan are both types of retirement plans.efinition. A savings and investment plan that provides income during retirement. It is often created by companies or the government for employees. A defined benefit plan and a defined contribution plan are both types of retirement plans.