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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.
c. Seniority at time of retirement. Which of the following describes defined benefit pension plans. d. Retirement benefits are based on the plan benefit formula. Defined contribution pension plans that link the amount of contributions to company performance are often called.