Flat Benefit Formula
A method of calculating an employer's contribution to an employee's defined benefit plan whereby the employer multiplies an employee's months of service by a predetermined flat monthly rate.
Investopedia Commentary
There are three basic types of defined benefit plans: the flat benefit, unit benefit and variable benefit.
Related Links
Introductory Tour through Retirement Plans
See also: 401K Plan, Cash Balance Pension Plan, Defined Benefit Plan, IRA, Pension Plan, Pension Shortfall, RRSP, Superannuation, Target Benefit Plan