Advantages of a Defined Benefit Plan
Your Advantages
You benefit because a defined benefit plan:
- Lets you deduct your contributions from taxes as a business expense
- Helps recruit and keep quality employees
- Lets you recognize past service for you and your employees
- Invests in long-term employees rather than short-term employees
- Can lower your funding levels during periods of higher investment return
- Reduces your need for employee investment education
Employee Advantages
Plan members benefit because a defined benefit plan allows them to:
- Receive a benefit set by the plan
- Save for retirement without making any investment decisions or assuming any investment risk
