A defined benefit plan is also known as an accumulation fund.

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A defined benefit plan is a type of pension plan in which an employer promises a specified retirement benefit to its employees based on a formula that typically takes into account factors such as length of service and salary history. An accumulation fund, on the other hand, is a type of investment account that is used to save for retirement and other long-term goals through regular contributions and the compounding of returns. These two concepts are distinct and should not be confused.

A Defined Benefit Plan Is Also Known as an Accumulation