Describe Defined Benefits Plan and Defined Contribution Plan.

A Defined Benefit Plan is where the employer agrees to pay an employee a given sum of money at the retirement period every month. In this approach, benefits to be paid are determined using the formula by considering either the person’s years of service or the compensation rate. On the other hand, a Defined Contribution Plan refers to a retirement plan where an account is created for each employee, and contributions are made to them, including the earnings of the program.

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Academic.Tips. (2022, October 9). Describe Defined Benefits Plan and Defined Contribution Plan. https://academic.tips/question/describe-defined-benefits-plan-and-defined-contribution-plan/

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Academic.Tips. 2022. "Describe Defined Benefits Plan and Defined Contribution Plan." October 9, 2022. https://academic.tips/question/describe-defined-benefits-plan-and-defined-contribution-plan/.

1. Academic.Tips. "Describe Defined Benefits Plan and Defined Contribution Plan." October 9, 2022. https://academic.tips/question/describe-defined-benefits-plan-and-defined-contribution-plan/.


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