Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

defined benefit plan

Read a random definition: blocked income

A quick definition of defined benefit plan:

A defined benefit plan is a retirement plan where an employee gets a fixed amount of money when they retire. This amount is agreed upon with the employer and does not change based on how much the employee contributes. The government will back the pensions if the employer becomes insolvent.

A more thorough explanation:

A defined benefit plan is a type of retirement plan offered by employers to their employees. In this plan, the amount of money an employee will receive after retirement is predetermined and fixed. This means that the employee will receive a specific amount of money periodically, as agreed upon with the employer, regardless of the amount they contributed to the plan.

For example, let's say an employee works for a company for 30 years and is enrolled in a defined benefit plan. The employer agrees to pay the employee $2,000 per month after retirement. This amount is fixed and will not change, regardless of how much the employee contributed to the plan during their employment.

Defined benefit plans are different from other retirement plans, such as defined contribution plans, where the amount an employee receives after retirement is based on the amount they contributed to the plan and the performance of the investments made with those contributions.

Employers must follow guidelines set out by the Employee Retirement Income Security Act (ERISA) when offering defined benefit plans. The government also provides backing for these plans in case the employer becomes insolvent.

deficit | defined contribution plan

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
LSD+ is ad-free, with DMs, discounts, case briefs & more.