A Defined Benefit Plan is a type of retirement plan where an employer guarantees a specific payout to employees upon retirement. The amount is usually based on factors such as salary history and years of service. This ensures that employees receive a predictable income during their retirement years. These plans are often funded by the employer, who is responsible for managing the investments and ensuring there are enough funds to meet future obligations. Unlike Defined Contribution Plans, where employees contribute and manage their own retirement savings, a Defined Benefit Plan provides a stable income, reducing financial uncertainty for retirees.