About Defined Benefit Plans

Participation in a defined benefit plan can help you meet your income-replacement goals. It promises reliable, lifetime income from a benefit you can never outlive. 

  • A defined benefit plan is a traditional type of pension plan that pays benefits according to a formula based upon factors such as wages, service and age.

  • You are entitled to a lifetime monthly benefit from a defined benefit plan.

  • The benefit you receive in a defined benefit plan is not dependent on investment performance. You will receive the benefit promised by the Plan’s formula regardless of the investment return and volatility of the financial markets.

  • The assets of a defined benefit plan are managed by fiduciaries for the benefit of all participants.

  • Your benefit in a defined benefit plan is safeguarded (within limits) by the Pension Benefit Guaranty Corporation, a federal agency that insures pension plans.

For Employees

If you are considering employment with an employer that maintains a defined benefit plan, please contact the employer’s human resources department for additional details about its defined benefit plan.

For Financial Advisors

If you are a financial advisor working with an individual who participates in a defined benefit plan, you likely are well aware of the tremendous advantages offered by such a plan. You also likely know that the specific value of a benefit depends upon several specific plan features, such as the benefit accrual rate (or benefit multiplier), early retirement subsidies, post-normal retirement date actuarial increases, and actuarial equivalence assumptions. If you would like additional information about those features for a particular plan, please contact United Benefits Group.