ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Pensions and cash balance plans are the two most common forms of Defined Benefit Pension Plans.

Detailed explanation-2: -A defined benefit plan promises a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $100 per month at retirement.

Detailed explanation-3: -A defined benefit plan is usually the result of your consistency and discipline rather than your financial contributions. Gratuity and leave salary are the two most popular defined benefit plans available to the employed workforce in India.

Detailed explanation-4: -Defined benefit plans provide a fixed, pre-established benefit for employees at retirement. Employees often value the fixed benefit provided by this type of plan. On the employer side, businesses can generally contribute (and therefore deduct) more each year than in defined contribution plans.

Detailed explanation-5: -A pension plan is an employee benefit that commits the employer to make regular contributions to a pool of money that is set aside in order to fund payments made to eligible employees after they retire.