What Are the Features of a Defined Benefit Plan? A defined benefit plan guarantees retirement benefits for an employee. Some of the features include: Employer sponsored: The employer funds and manages ...

A defined benefit plan is a retirement option where the benefits paid on retirement are calculated using a fixed formula. The formula is typically based on the employee’s salary history and the number ...

This column has been modified to correct the amount of the required contribution for Janet's DB plan. Minimizing taxes isn’t always the best idea. Rich found this out the hard way. You may have heard ...

The SECURE Act 2.0, enacted in December 2022, made several updates to what must be included in annual funding notices (“AFN”) issued by defined benefit pension plans. For large plans (as defined below ...

The IRS on Nov. 17, 2025, announced the cost-of-living adjustments for limitations applicable to employee benefit plans under the Internal ...

Elizabeth Guevara is a personal finance reporter who explains the world of business and economics and how it impacts your finances. She joined Investopedia in 2024. Investopedia / Photo Illustration ...

Labor Day 1974 came during a tumultous time in American politics, arriving just a few weeks after President Richard Nixon resigned amid the Watergate scandal. But lawmakers at the time were able to ...

In 1974, Congress transformed the American retirement system. By a unanimous vote in the Senate and a margin of 407-2 in the House, it passed the Employee Retirement Income Security Act. The goal was ...

Many federal employees ask me when they will be eligible for “full retirement.” I prefer the phrase “financially ready for retirement,” the point when income from all retirement sources covers your ...