What are the primary differences between a defined benefit and a defined contribution plan I The investment risk is carried by the participant with defined contribution plans and by the sponsor with defined benefit plans II Defined benefit plans have historically outperformed defined contribution plans One possible reason for this could be better access to professional asset management III Defined benefit plans are portable, while defined contribution plans are not

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Question: What are the primary differences between a defined benefit and a defined contribution plan? I. The investment risk is carried by the participant with defined

What are the primary differences between a defined benefit and a defined contribution plan?

I. The investment risk is carried by the participant with defined contribution plans and by the sponsor with defined benefit plans.

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Defined benefit plans have historically outperformed defined contribution plans. One possible reason for this could be better access to professional asset management.

III. Defined benefit plans are portable, while defined contribution plans are not.

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