FASB Search 41. Definitions for Defined Benefit Pension Plan and Defined Contribution Pension Plan 715-30-20Defined Benefit Plan - A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan.a. Defined benefit health and welfare plans: Defined benefit health and welfare plans specify a determinable benefit, which may take the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of services specified. Such plans may also include benefits payable as a lump sum, such as death benefits. The level of benefits can be defined or limited based on factors such as age, years of service and salary. Contributions may be determined by the plan actuary or be based on premiums, actual claims paid, hours worked or other factors determined by the plan sponsor. Even when a plan is funded under arrangements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), that plan may still be a defined benefit health and pension plan if its substance is to provide a defined benefit .B. Defined Benefit Pension Plan: A pension plan that defines the amount of retirement benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan.c. Defined Benefit Postretirement Plan: A plan that defines postretirement benefits in terms of monetary amounts (e.g., $100,000 of life insurance) or benefit coverage to be provided (e.g., up to $200 per day for... half of the document) ......ns and how these amounts are measured. Improve the understandability and comparability of reported amounts by requiring employers with similar plans to use the same method to measure their pension and other retirement benefit obligations and related retirement costs. benefits.3. Defined Contribution Pension Plan Information Requirements715-70-50-1 The employer must disclose the amount of cost recognized for defined contribution pension plans and other defined contribution pension plans for all periods presented separately from the amount of the recognized cost. for defined benefit plans, the disclosure must include a description of the nature and effect of any significant changes during the period that affect comparability, such as a change in the rate of employer contributions, a business combination or a sale..