Pension (Defined Benefit Plan)
Also called: defined benefit plan, final salary pension, DB pension
A defined benefit pension promises a specified income in retirement, usually based on salary and years of service, with the employer bearing the investment and longevity risk. It's the arrangement that made retirement predictable for a generation and has largely disappeared from the private sector because that risk proved enormous. Where they survive, the plan's funding level and any government guarantee limit are what a member should actually check.