Think: 401k Plan...with teeth (biting the employer). Why? Because it's a defined benefit program (versus a defined contribution program). In a defined benefit program, the employer guarantees a minimum investment return from the employees' invested funds. If those investments fall short, the employer must write a check to make up the difference.
Related or Semi-related Video
Finance: What is a 529 Savings Plan?3 Views
Up Next
What is a pension? Pensions are just retirement plans. Employers provide them and pay into funds as an investment for their employees. Once employe...
What do you need to retire? Retirement - think: 401k, pension fund, IRA, roth IRA, etc. All of these savings socked away while you worked hard are...
How do you stay rich after you...get rich? The focus: index funds, mutual funds, way more stocks than bonds. Three words: don't be stupid.