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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.
At most U.S. corporations, defined-contribution pension plans have largely replaced the traditional defined-benefit pension plans. Defined-benefit plans define the actual benefit you receive and pay out a specific dollar amount per month in retirement.