The specifics for each company's benefit allocation method would be included in the company's employee benefits plan. With the benefit allocation method, the plan specifies that for each unit of service (each year, for example) an employee will receive a certain amount (either a dollar amount or a specified percentage of salary) towards an employee pension plan. Higher paid employees with longer service typically receive a greater benefit. The employer can then make a payment into a plan such as a deferred annuity on behalf of the employee.