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This is Financial Adviser Patrick Munro talking about, what is a defined benefit plan. In
the area of retirement plans, companies have to offer retirement plans to retain and keep
a valuable employees. A defined benefit plan is a plan that's been approved by the IRS
whereby a company can tax deduct dollars from a paycheck so their employees put it aside
for their retirement. Many times progressive employment companies will match the deductions
that are taken off the employee's paychecks and further enhance their retirement. An employee
that's working for such a company will probably stay on long term to enhance that particular
benefit into retirement. Defined benefit plans are qualified so that any of the dollars that
are placed into these plans accrue tax deferred. This is Patrick Munro talking about the benefits
of deferred pension plans.