In recent years, more and more employers are offering employees defined contribution plans instead of defined benefit plans. Although, there has been a shift away from the defined benefit pension plan, it is important for employees to understand the difference and value of both pension plans.
Each type of pension plan has both advantages and disadvantages. What may appear as an advantage to one person might seem to be a disadvantage to another person. For example, a person who spends all or most of her career with a single employer will have very different concerns from someone who changes jobs many times over the course of her career. It is important to understand these factors in light of your own particular work history.
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Brown, Emily G. JD and Medeiros, Jeanne JD, "Understanding the Differences Between Defined Benefit Pension And Defined Contribution" (2014). Pension Action Center Publications. 9.