Defined Benefit Plans
A Defined Benefit (DB) plan provides a solid foundation for retirement, rounding out a total retirement program. It can be used with 401(k), 403(b), profit sharing, money purchase and nonqualified plans, or on its own.
As the top recordkeeper of Defined Benefit plans[1], we serve nearly 2,500 defined benefit plans with over 344,000 active plan participants and retirees[2].
This plan is often referred to as a pension, and is funded by the plan sponsor.
What are the advantages of a Defined Benefit retirement program?
- Lets you deduct your contributions from taxes as a business expense
- Helps recruit and keep quality employees
- Invests in long-term employees rather than short-term employees
Employee advantages
A Defined Benefit retirement plan allows employees to:
- Receive a guaranteed benefit, funded by you
- Eliminate investment decisions and assuming investment risk
See how DB plan services benefit everyone
As a Defined Benefit plan sponor, both you and your participants will benefit from the consultative approach we use to determine a strategy that suits your organization's needs. Details
Already working with a Third-Party administrator?
You can also unbundle your retirement plan services with The Principal to help meet your individual needs.
- Winding Down Your Hard-Frozen Defined Benefit (DB) Plan: Learn best practices for developing and implementing a DB plan termination strategy in a timely, cost-efficient manner. (PDF: 695 KB)
- Considering a cash balance plan (PDF: 41 KB), a plan freeze (PDF: 43 KB), or plan termination (PDF: 64 KB)? - Get the facts to help you decide what's right for your retirement plan.
