Definition
Defined benefit plan is the retirement plan where benefits are predetermined based on salary and years of service. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Defined benefit plan is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Retirement plan where benefits are predetermined based on salary and years of service.
Common mistake
Using Defined benefit plan as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Defined contribution plan
Retirement plan where contributions are specified but benefits depend on investment performance.
Read definition →
Decremental analysis
Decision-making approach focusing on changes in costs and benefits.
Read definition →
Defeasance
Legal process of discharging a debt obligation before its maturity date.
Read definition →
Deflation
Economic condition characterized by a general decrease in prices over time.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.