A retirement plan under which pension benefits are fixed in advance by a formula based generally on years of service to the company multiplied by a specific percentage of wages, usually average earnings over that period or highest average earnings over the final years with the company.

"Defined Benefit Plan" In Context

"Currently, employees who are in a defined-benefit plan (they have the option today to choose either a defined-benefit and a defined-contribution plan), have two ways to calculate their retirement: --The traditional way is that a SURS employee receives 2.2 ..."