[New post] PENSION PLANS: Defined Benefit V. Defined Contribution Types

Editor-in-Chief posted: " KNOW THE DIFFERENCE *** Defined Benefit Pension Plan A defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum or combination thereof on retirement that is prede" Respond to this post by replying above this line New post on The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants PENSION PLANS: Defined Benefit V. Defined Contribution Types by Editor-in-Chief KNOW THE DIFFERENCE *** Defined Benefit Pension Plan A defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum or combination thereof on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provide defined benefit plans, sometimes as a means of compensating workers in lieu of increased pay. Defined Contribution Plan A defined contribution (DC) plan is a type of retirement plan in which the employer, employee or both make contributions on a regular basis. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts (through employee contributions and, if applicable, employer contributions) plus any investment earnings on the money in the account. In defined contribution plans, future benefits fluctuate on the basis of investment earnings. The most common type of defined contribution plan is a savings and thrift plan. Under this type of plan, the employee contributes a predetermined portion of his or her earnings (usually pretax) to an individual account, all or part of which is matched by the employer. CITE: Wilipedia CITE: https://www.r2library.com/Resource/Title/0826102549 *** Your comments are appreciated. THANK YOU *** Editor-in-Chief | August 8, 2021 at 10:16 am | Tags: defined benefit plan, defined contribution plan, pension plans, retirement plans | Categories: Glossary Terms, iMBA, Inc., Investing, Portfolio Management, Retirement and Benefits | URL: https://wp.me/p7PRJ-11Ua Comment    See all comments    Like Unsubscribe to no longer receive posts from The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants. Change your email settings at Manage Subscriptions. Trouble clicking? Copy and paste this URL into your browser: http://medicalexecutivepost.com/2021/08/08/pension-plans-defined-benefit-v-defined-contribution-types/ Thanks for flying with WordPress.com