Defined-benefit Pension Plan

Defined-benefit Pension Plan means:
a plan that promises to pay a specified amount (based on a predetermined formula) to each person who retires after a set number of years of service. Such trust plans pay no taxes on their investment income. Employees contribute in some cases; in others, all contributions are made by the employer. A separate account is not provided for each person covered by the plan, as is the case with a defined-contribution plan. Former IRC (check if this IRC provision is current here) §§4l4(j) and 415(b). See Defined Benefit Pension Plan.