In defined benefit (DB) plans, the retirement benefit is defined as an annuity payable at retirement.
A cash balance plan is a type of defined benefit (DB) plan that looks and feels like a defined contribution (DC) plan, such as a profit sharing plan.
A floor offset arrangement is a defined benefit (DB) plan combined with a defined contribution (DC) plan such as a profit sharing plan to provide a total benefit.
Defined contribution plans may include both employee contributions (commonly known as 401(k) deferrals) and employer contributions.
A profit sharing contribution is a discretionary employer contribution made on behalf of plan participants.
Plans with a 401(k) provision allow a participant to contribute or “defer” a portion of his or her own compensation to the plan for investment.
Plans that offer benefits other than pension after termination of employment are commonly referred to as “Other Post-Employment Benefit Plans (OPEBs)”.
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