defined benefit

USAGE SUMMARY

The phrase "defined benefit" is correct and usable in written English.
It is typically used in the context of retirement plans or pension schemes that provide a predetermined payout to retirees based on specific criteria. Example: "The company offers a defined benefit plan that guarantees employees a fixed monthly income after retirement based on their salary and years of service."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

44 human-written examples

There's no defined benefit.

The New York Times

(d)Defined benefit plans.

Cornell University

Defined benefit pensions.

Stanford University

Measuring defined benefit pension liabilities.

Stanford University

(3 Testing rule for defined benefit plans.

Cornell University

(A defined benefit pension promises a specific income).

The Guardian

Human-verified similar examples from authoritative sources

Similar Expressions

16 human-written examples

Consider the fate of the defined benefit pension plan.

Forbes

I think you meant the decline in defined-benefit plans.

The Economist

Opponents say that would kill off defined-benefit schemes.

The Economist

–Make quarterly defined-benefit Keogh contribution for the current year.

Forbes

That defined-benefit healthcare plan that is blowing up?

HuffPost

Expert writing Tips

Best practice

When discussing retirement plans, clearly distinguish "defined benefit" plans from "defined contribution" plans to avoid confusion. A "defined benefit" plan guarantees a specific payout in retirement, whereas a "defined contribution" plan's payout depends on investment performance.

Common error

Don't assume that a "defined benefit" plan is always superior to a "defined contribution" plan. While it offers a guaranteed payout, the employer bears the investment risk, which can sometimes lead to underfunding or plan termination. Consider your own risk tolerance and financial situation when evaluating these options.

Linguistic Context

The phrase "defined benefit" functions as a noun phrase, where 'defined' acts as an adjective modifying the noun 'benefit'. Ludwig AI confirms this usage across various contexts.

Expression frequency: Very common

Frequent in

News & Media

36%

Academia

32%

Formal & Business

16%

Less common in

Science

8%

Encyclopedias

4%

Wiki

4%

Ludwig's WRAP-UP

The phrase "defined benefit" is a common and grammatically correct term, primarily used to describe a type of retirement plan or pension scheme where the payout is predetermined. Ludwig AI confirms its widespread usage across news, academic, and business contexts. Understanding its distinction from "defined contribution" plans is crucial. Key considerations include the guaranteed income aspect, employer-managed investments, and the shift in risk allocation. Remember to tailor your writing to your audience and context by carefully choosing the most effective phrasing.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

guaranteed benefit

Emphasizes the assurance aspect of the benefit.

fixed benefit

Focuses on the unchanging nature of the benefit amount.

predetermined benefit

Highlights that the benefit is decided in advance.

specified benefit

Indicates that the benefit is clearly laid out and detailed.

known benefit

Stresses the transparency and awareness of the benefit.

certain benefit

Highlights the sureness of receiving the benefit.

assured benefit

Focuses on the guarantee of the benefit's provision.

pension with guaranteed payout

Expands the phrase to specify a pension context with a sure outcome.

retirement plan with fixed income

Rephrases within a retirement context focusing on income.

employer-sponsored pension

Describes who is providing the retirement benefit.

FAQs

What is a "defined benefit" plan?

A "defined benefit" plan is a type of retirement plan, often a pension, where an employee's retirement payments are calculated based on factors such as salary history and years of service, rather than on investment returns.

How does a "defined benefit" plan differ from a "defined contribution" plan?

In a "defined benefit" plan, the employer guarantees a specific payout upon retirement. In contrast, a "defined contribution" plan, like a 401(k), does not guarantee a specific payout; the retirement income depends on contributions and investment performance.

What are the advantages of a "defined benefit" plan?

Advantages of a "defined benefit" plan include a guaranteed retirement income, professional management of investments by the employer, and reduced financial risk for the employee compared to "defined contribution" plans.

Are "defined benefit" plans still common?

While less common than in the past, "defined benefit" plans are still offered by some employers, particularly in the public sector. Many private sector companies have shifted to "defined contribution" plans due to cost and risk management considerations.