A defined benefit plan that expresses benefits as a lump-sum benefit rather than as an annuity. There are no account balances for the plan participants. In addition, this plan recognizes final average salary in the benefit calculation. Under the life cycle plan, a participant earns credits for each year of service. Age is not directly a factor, except as it pertains to how much service an individual could accrue. The total of these credits is considered a percentage, which is multiplied by the annual final average salary of the participant to determine what lump sum will be paid at retirement. Also known as retirement bonus plan and lump-sum plan.