Defined Benefit Interest Rate Earned

The rate of return for the Defined Benefit plan was 15.0 percent as of December 31, 2020. Defined Benefit Plan investment returns help support the plan as a whole in paying for benefits and making benefit improvements for plan participants.

The Defined Benefit Plan offers each participant a benefit based on a predetermined formula using the number of credited service years and average annual compensation, multiplied by a percentage. This formula generates each participant a monthly benefit that is paid for the retiree’s lifetime, as long as the plan is in place. Individual accounts with cash balances are not maintained. The funds in a defined benefit pension fund are all working together in a pool. The Defined Benefit Plan investment returns help support the plan as a whole in paying for benefits and making improvements for plan participants.