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Provide specific examples of defined benefit plans

Provide specific examples of defined benefit plans

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Answer #1

A defined-benefit plan is an employer-sponsored retirement plan where employee benefits are computed using a formula that considers several factors, such as length of employment and salary history.

some specific example for this can be-

1.EBP Ltd. has post-retirement benefits plan which entitles its employees to an amount equivalent to the product of its basic salary and number of years of service at the time of retirement.

2. DCP Ltd. too has a pension plan but its agreement with the employees requires DCP to contribute an amount equal to the sum of the current basic salaries of current employees to the fund.

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