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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.
A defined benefit pension plan (plan) is a plan which provides a lifetime annuity option with the. risk of investment and longevity/mortality of the beneficiary borne by the plan/employer. The plan. is covered by ERISA which requires that the plan sponsor report annually to participants on the.