The Key Differences Between a Defined Benefit and Defined Contribution Pension Plan
As an employer, you may be thinking about offering your employees a pension plan. If so, you have two main options:
Defined benefit pension plan
Defined contribution pension plan
A defined benefit pension plan offers your employees a set amount of money when they retire, whereas a defined contribution pension plan, does not.
There are four key areas you should be aware of when selecting a pension plan:
We will compare each of the areas to give you a better understanding of the differences between the two types of pension plans.