A Defined Benefit Plan (DBP) is a retirement plan in which an employer guarantees a fixed and predictable income stream upon retirement, typically based on an employee's salary history and years of service. While the pension fund administers contributions and manages investment strategies, Third-Party Administrators (TPAs) and advisers are responsible for designing the plan and optimizing investment performance.

Defined Contribution Plans offer a retirement benefit that fluctuate based on contributions and investment performance. These plans provide greater flexibility in investment options and portability, allowing employees to easily transfer their fundswhen changing jobs. However, individuals who participate in DBPs often accumulate higher retirement savings, especially among lower-income workers.

Cash Balance Plans offer a hybrid approach between DBPs and DCPs, providing a balance of security and flexibility.