Defined Benefit Pension Plans are required to pay retired employees an amount determined by formula,regardless of the amount contributed to the plan.

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Defined Benefit Pension Plans provide a specific benefit to retired employees, determined by a formula that takes into account factors such as length of service and salary history. The amount paid to retirees is not based on the amount contributed to the plan by the employer or employee.

Defined Benefit Pension Plans Are Required to Pay Retired Employees