Financial Dictionary

Defined Benefit Fund - A superannuation fund in which the benefits to be paid to the member are defined in advance of the member's retirement. The benefit is usually expressed as a proportion (eg. two-thirds, or 75%, etc) of the member's salary on retirement. In these funds it is generally the company or sponsor of the fund (rather than the member) which carries the risk as to the ability of the fund to meet its liabilities. Opposite of Defined Contribution Fund, or Accumulation Fund.