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Vera_Pavlovna [14]
1 year ago
13

What is the main difference between a defined-benefit plan and a defined-

Social Studies
1 answer:
Klio2033 [76]1 year ago
8 0

The amount of retirement income that employees would receive upon retirement is specified under a defined benefit plan (APERS). A defined contribution plan merely stipulates how much each party—the employer and the employee—puts into the retirement account of the employee.

<h3>What is the difference between defined benefit and defined contribution plan?</h3>
  • For each participant in a defined-benefit pension plan, employers finance and guarantee a certain amount as retirement benefits.
  • As the participant defers a percentage of their gross pay, defined-contribution plans are largely supported by the employee. Employers may decide to match the contributions up to a specific level.
  • The responsibility of saving and investing for retirement has been put on employees as a result of the switch to defined-contribution plans.
  • The 401(k) is the preferred defined-contribution plan (k).
  • Companies have a consistent preference for defined-contribution plans over defined-benefit plans.

To learn more about defined benefit and defined contribution plan, refer to the following link:

brainly.com/question/12334165

#SPJ4

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