• Retirement benefits under a defined-benefit plan are generally based on a formula that included such factors as years of service and compensation. If the trust funding the plan lacks sufficient assets to pay the promised benefits, ERISA requires the employer to cover the shortfall. 29 USCA § 1002(35). Cf. defined-contribution plan. [Cases: Pensions 28. C.J.S. Pensions and Retirement Plans and Benefits §§ 11–15.]
defined benefit plan
A plan established and maintained by an employer primarily to provide systematically for the payment of definitely determinable benefits to employees over a period of years, usu. for life, after retirement; any pension plan that is not a defined-contribution plan.
