defined benefit pension scheme
A pension scheme is a defined benefit (DB) pension scheme if the benefit level is determined beforehand or if it is determined on the basis of the earnings level and length of work history. To finance the benefits, the contributions are flexible. The Finnish earnings-related pension scheme is a DB pension scheme.
Compare with defined contribution (DC) pension scheme.
- Suomeksi: etuusperusteinen eläkejärjestelmä
- På svenska: förmånsbestämt pensionssystem
- In English: defined benefit pension scheme