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A defined benefit pension plan is a pension plan that provides a specific pre-determinable amount of benefits to a participant at the individual's projected date of retirement. Normally, the benefits are based on a formula that incorporates the participant's projected years of service and final average compensation. Defined benefit plans are required to be funded on an ongoing basis in accordance with actuarial principles enumerated in ERISA. A participant's benefits under a defined benefit pension plan are referred to as accrued benefits.