Defined Benefit Plan
A form of retirement plan under which the The other person involved in a financial transaction. Examples of counterparties include the bank issuing your mortgage, the bank at which you have your checking and savings accounts or the company is... More, often your employer, promises to pay you a stated amount of money, sometimes adjusted for inflation, on a periodic basis usually from when you attain a certain age until you die. The name “defined benefit” comes from the feature that the benefit or amount you receive is determined in advance by some formula. The amount of contributions, generally made by your employer though often with employee contributions if you work for a public entity, varies depending on the investment returns of the retirement plan. Defined benefit plans are often called pension plans in the US.
I am also a retired property-casualty A professional who assesses and manages the risks of financial investments, insurance policies and other potentially risky ventures. Source: www.investopedia.com/terms/a/actuary.asp More (someone who works with the math and statistics related to insurance). I spent a significant portion of my career building statistical models of all of the financial risks of an insurance company and interpreting their findings to help senior management make better financial decisions. I retired in my late 50’s, which one of my daughter’s friends thought clearly qualified me to write this blog. Read more about Susie Q