Flat Benefit Formula

AAA

DEFINITION of 'Flat Benefit Formula'

A method of calculating an employer's contribution to an employee's defined benefit plan whereby the employer multiplies an employee's months of service by a predetermined flat monthly rate.

INVESTOPEDIA EXPLAINS 'Flat Benefit Formula'

There are three basic types of defined benefit plans: the flat benefit, unit benefit and variable benefit.

RELATED TERMS
  1. Benefit Allowance

    Money that a company or government agency provides to an employee ...
  2. Coinsurance Formula

    The homeowners insurance formula that determines the amount of ...
  3. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  4. Cash Balance Pension Plan

    A pension plan under which an employer credits a participant's ...
  5. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  6. Target-Benefit Plan

    A benefit plan that is similar to a defined benefit plan since ...
Related Articles
  1. Personal Finance

    Employee Benefits: How To Know What ...

  2. Financial worries can make employees less productive at work. As a result, the employee was no longer producing quality work and they might get fired.
    Savings

    Are Financial Worries Affecting Your ...

  3. Retirement

    What is the minimum amount of money ...

  4. A description of the top retirement plans for self-employed
    Retirement

    Self-Employed? Top Plans For Retirement ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center