Series 65: 6.2.2.1 Defined Benefit Plans

6.2.2.1  Defined Benefit Plans

A defined benefit plan is a qualified plan in which the employer promises to pay each eligible employee a specific periodic (usually monthly) benefit for life, starting at retirement. The most common example of the defined benefit plan is the pension plan. These plans are typically funded and managed by the company or organization that employs the participant. Therefore, all the investment decisions are made by the employer, and it is the employer’s responsibility t