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 for Defined Benefit plans, we serve nearly 2,700 Defined Benefit plans with over 340,000 plan participants and retirees.[1]
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 plan services benefit everyone
As a plan sponsor for a Defined Benefit retirement plan, 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.
- Pension Protection Act: Short-term decisions, long-term opportunities for Defined Benefit plan sponsors
- 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.
