Feb 15, 2021
A Comprehensive guide for your defined benefit pension plans
A defined benefit pension scheme is one where the amount you’re paid is based on how many years you’ve worked for your employer, the salary you had earned, either at the end of your employment or the average over a period of years prior to your retirement (or leaving the company) and the proportion of that salary at which your employers scheme based your pension pay out on (usually 1/60th or 1/80th). Defined benefit plans are common for employer-sponsored retirement plans, especially older schemes. Like other eligible schemes, they offer tax incentives to employers and partner employees.
Read more here: A Comprehensive guide for your defined benefit pension plans