What does the term "flat dollar amount" generally imply in retirement plans?

The term "flat dollar amount" in retirement plans refers to a specific, fixed sum of money that is paid out, regardless of external factors or variables. This means that participants will receive the same dollar amount as specified, without any adjustments for job titles, company performance, inflation rates, or other influence factors that may typically affect the calculation of benefits. This straightforward approach provides clarity and predictability for both the employer and the employee in the context of retirement planning. Thus, it reflects the essence of what a "flat dollar amount" represents in retirement benefits.