How Are Retirement Benefits Calculated?

What Are Some Advantages Offered By Defined Benefit Plans?

How Do Defined Benefit Plans Differ From Defined Contribution Plans?

What Are Cash Balance Plans?

Each year, pension actuaries calculate the future benefits that are projected to be paid from the plan, and ultimately determine what amount, if any, needs to be contributed to the plan to fund that projected benefit payout. Those contributions can be made on a fully tax deductible basis.