Types of Benefits
There are three major types of benefit plans that companies may offer which are commonly regulated by the government to ensure that employee health care and retirement security is provided Defined Benefit, Defined Contribution, and Health and Welfare.
Defined Benefit Plans
These plans provide income to employees after they retire and stop working. In the U.S., defined benefit plans are often referred to as pension plans. Technically, a pension plan is a plan that provides retirement income to former employees. Other countries use the term pension plan more broadly to include defined benefit and defined contribution plans (Which will be reviewed next). Over time in the U.S., however, pension plans have more informally become synonymous with defined benefit plans.