What Is A Defined Benefit Retirement Plan And Why Are They Disappearing?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    A defined benefit plan is a qualified pension plan.  Participants do not have separate accounts.  The benefit is defined in the plan and is usually a combination of years of service, highest or average covered wages, and age at retirement.  The reason that these plans are fading is that administrators cannot find investments that will give the yield that existing plans require to keep them solvent.  
    Answered on August 12, 2014
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