Document Fragment View

Matching Fragments

"Defined Benefit Plans:-
IN the DB Pension plan, participants and/or sponsors make contributions, and these contributions could change over time. The scheme then provides a defined benefit a prespecified annuity in either absolute currency or as a fraction of a measure of salary (e.g. 5- percent of final salary or the average of the last five years of salary). The guaranteed pension benefit could be in either real or nominal terms. The ratio of annuity or benefit to a measure of salary is known as the replacement rate.