Question: Defined benefit vs . defined contribution pension plans Review the main characteristics of defined contribution and defined benefit pension plans. How is cash - balance

Defined benefit vs. defined contribution pension plans
Review the main characteristics of defined contribution and defined benefit pension plans. How is cash-balance plan similar to each of them?
A cash-balance plan is similar to a defined J plan in that the employee pays nothing into the plan.
A cash-balance plan is similar to a defined plan in that the company contributions are based on a percentage of the employee's current salary.
Does the employee or employer bear the risk of poor investment performance
a. in a defined contribution plan?
b. in a defined benefit plan?
Defined benefit vs. defined contribution pension plans Review the main characteristics

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