A DB Scheme, or Defined-Benefit Pension Scheme, promises a specified pension payment, lump-sum, or combination thereof on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service, and age.
Integration with Social Security is a method of reducing an employee pension based on the Social Security benefits the employee receives. This approach aims to coordinate a company's pension plan with Social Security to ensure adequate retirement income for employees.
A Pension Equity Plan (PEP) is a type of defined-benefit pension plan design in which a participant's benefit is stated as a lump sum based on the participant's age, service, and average pay, with the average pay usually based on only the final few years of employment.
