A corporate retirment plan where the employer pays out a monthly pension to an employee is known as a defined benefit plan.
In the past, most corporations offered defined benefits to their workers beased on the persons salary and years of service.
In the last 10-15 years, companies have moved more of their retirement benefits to 401 k type plans.
Private companies that use defined benefit plans are normally larger corporations. These arrangements pay out a monthly benefit to retired workers.
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2006 American Investment Training, Inc.
