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A defined benefit plan provides a set amount of benefit to the employee at the time of retirement, and a defined contribution plan specifies the amount of money an employer contributes to a retirement fund for each individual employee.

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Q: What is the main difference between a defined benefit plan and a defined contribution plan?
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What is the main difference between and defined benefit plan and a defined contribution plan?

A defined benefit plan provides a set amount of benefit to the employee at the time of retirement, and a defined contribution plan specifies the amount of money an employer contributes to a retirement fund for each individual employee.


What is the difference between the Thrift Savings Plan and FERS?

FERS is a retirement system that includes both a small defined benefit plan and a defined contribution plan. The Thrift Savings Plan is the defined contribution plan used in FERS.


What is the main difference a defined benefit plan and a defined contribution plan?

A defined benefit plan provides a set amount of benefit to the employee at the time of retirement, and a defined contribution plan specifies the amount of money an employer contributes to a retirement fund for each individual employee.


What's the difference between a pension and a 401k?

The biggest difference between a 401(k) plan and a traditional pension plan is the distinction between a defined benefit plan and a defined contribution plan. Defined benefit plans, such as pensions, guarantee a given amount of monthly income in retirement and place the investment risk on the plan provider.


The difference between price and average variable cost is defined as?

Profit contribution


A defined contribution plan is part of which employee benefit?

retirement


Which retirement saving program has a benefit that will depend on your yearly contribution and the rate of return on invested assets?

Defined Contribution Plan


How may defined benefit plans be said to be more popular than defined contribution plans?

Among the top 200 pension funds, $1 trillion in assets invested in defined benefit plans were managed internally in 1998; for defined contribution plans, of course, the figure was much lower, at only $103 billion.


What are the downsides of a defined benefit retirement plan?

This can lemit an employees contribution levels. Each plan should be analyzed on it's onw.


What are pension plans?

Pension plans are a type of retirement plan in which the employee and employer make contributions. These contributions are invested and to be received upon retirement. In most all cases pension plans are tax exempt. The two types of pension plans are defined benefit plans and defined contribution plans. A defined benefit plan guarantees an amount upon retirement no matter how the investment performed. A defined contribution plan is not a guaranteed amount and heavily depends on the investment performance.


What Which of these statements about defined contribution retirement plans is false?

Employees can withdraw money from defined contribution retirement plans befor the age of 59.5


What is the difference between state and association?

states have defined territories but associations do not