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A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provided defined benefit plans, sometimes as a means of compensating workers in lieu of increased pay.〔Lemke and Lins, ''ERISA for Money Managers'', §1:1 (Thomson West, 2013).〕 A defined benefit plan is 'defined' in the sense that the benefit formula is defined and known in advance. Conversely, for a "defined contribution retirement saving plan", the formula for computing the employer's and employee's contributions is defined and known in advance, but the benefit to be paid out is not known in advance. In the United States, specifies a defined benefit plan to be any pension plan that is not a defined contribution plan where a defined contribution plan is any plan with individual accounts. A traditional pension plan that ''defines'' a ''benefit'' for an employee upon that employee's retirement is a defined benefit plan. The most common type of formula used is based on the employee’s terminal earnings (final salary). Under this formula, benefits are based on a percentage of average earnings during a specified number of years at the end of a worker’s career. In the private sector, defined benefit plans are often funded exclusively by employer contributions. For very small companies with one owner and a handful of younger employees, the business owner generally receives a high percentage of the benefits. In the public sector, defined benefit plans usually require employee contributions. Over time, these plans may face deficits or surpluses between the money currently in their plans and the total amount of their pension obligations.〔 〕 Contributions may be made by the employee, the employer, or both. In many defined benefit plans the employer bears the investment risk and can benefit from surpluses. ==Overview== When participating in a defined benefit pension plan, an employer/sponsor promises to pay the employees/members a specific benefit for life beginning at retirement. The benefit is calculated in advance using a formula based on age, earnings, and years of service. In the United States, the maximum retirement benefit permitted in 2014 under a defined benefit plan is $210,000 (up from $205,000 in 2013). Defined benefit pension plans in the U.S. currently do not have contribution limits. The liability of the pension lies with the employer/sponsor who is responsible for making the decisions. Employer and/or employer/employee contributions to a defined benefit pension plan are based on a formula that calculates the contributions needed to meet the defined benefit. These contributions are actuarially determined taking into consideration the employee's life expectancy and normal retirement age, possible changes to interest rates, annual retirement benefit amount, and the potential for employee turnover.〔 Each jurisdiction would have legislation which has requirements and limitations for administering pension plans. Entitlements and limitations may also be based or established in common law. Employees are always entitled to the vested accrued benefit earned to date. If an employee leaves the company before retirement, the benefits earned so far are frozen and held in a trust for the employee until retirement age or in some instances the employee is able to take away a lump sum value or transfer the value to another pension plan. In the U.S., a defined benefit pension plan must allow its vested employees to receive their benefits no later than the 60th day after the end of the plan year in which they have been employed for ten years or leave their employer. Employees who reach age 65 or the specified retirement age in their plan can also collect the benefits. Starting in 2002, the maximum benefit is now reduced for retirement prior to age 62, and increased for retirement after age 65.〔 In the U.S., a defined benefit plan cannot force you to receive your benefits before normal retirement age. However, if the lump sum value of your benefit is less than $5,000, and you are vested, then the plan may simply pay your benefit as a lump sum soon after termination. The plan document has to allow for the automatic lump sum payment. However, you must begin to receive your benefits no later than April 1 of the calendar year next following the last year of employment or calendar year you reach age 70½, whichever is later.〔 Defined benefit plans distribute their benefits through life annuities. In a life annuity, employees receive equal periodic benefit payments (monthly, quarterly, etc.) for the rest of their lives. A defined benefit pension plan allows joint distributions so a surviving spouse can still receive 50 percent of your payment.〔 In the United States, 88 percent of public employees are covered by a defined benefit pension plan. In the United States, Federal public sector plans are governed by the Tax Code and Federal law, while state and local public sector plans are governed by the Tax Code and state law. Thus the funding requirements, benefits, plan solvency, and participant rights and obligations vary significantly. Private sector plans are governed by the Employee Retirement Income Security Act of 1974 (ERISA). This law contains provisions rooted in the Tax Code and enforced by the Internal Revenue Service, but, in Title I of ERISA, also provides a body of Federal law governing employee benefit plans that preempts state law. Rooted in the principles of trust law, Title I of ERISA governs the fiduciary conduct and reporting requirements of private sector employee benefits plans through a system of exclusively Federal rights and remedies. Title I is administered by the Employee Benefits Security Administration (EBSA) at the United States Department of Labor. EBSA is led by the Assistant Secretary of Labor for Employee Benefits, a Sub-Cabinet-level position requiring nomination by the President of the United States and confirmation by the United States Senate. The current Assistant Secretary of Labor for Employee Benefits and head of the Employee Benefits Security Administration is the Hon. Phyllis Borzi. Past Assistant Secretaries include the Hon. Bradford P. Campbell, the Hon. Ann L. Combs and the Hon. Olena Berg-Lacy. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Defined benefit pension plan」の詳細全文を読む スポンサード リンク
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