Question

Are employees more likely to favor defined contribution plans over defined benefit plans? How about employers? Explain your answers.

Answer 1

Answer: the contribution plan favours the employer while the defined benefit plan favours the employee

Explanation:

Defined contribution plans is described as a type of retirement plan where the employer, employee or both make contributions on a regular basis. While the defined benefit plan, the employer is responsible for all of the planning and investment risk, where employees are paid benefit based on length of employment and salary history. The employees are more likely to prefer the benefit plan, while the employer would prefer the contribution plan which favours him because of the contribution the employees make