“The traditional defined benefit plan provides a monthly income for the life of the participant (and spouse, unless the participant and spouse elect some other form of benefit). The amount of a monthly pension is determined by a formula which usually takes into account years of service and often pay. An example would be 1% of final average pay for each year of service” (United States Department of Labor, 2000).

U.S. Department of Labor. (2000, November 14). Report of the working group on phased retirement. Retrieved May 18, 2005, from the U.S. Department of Labor Employee Benefits Security Administration website: