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A defined contribution retirement plan can be advantageous for an employer because: the employer may take...

A defined contribution retirement plan can be advantageous for an employer because:

the employer may take t

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A defined contribution retirement plan can be advantageous for an employer because:

the employer may take the certain % of employees payroll as base and contribute to employees retirement plan accounts, Employers contribution is defined.

Defined contribution pension plans:

It is a plan in which participants contribute a certain % of their payroll to their own retirement plan accounts, usually in form of a deduction in their payroll.

Advantages:

1. The employer's contribution is defined.

2. During Great market conditions, there is no upper limit to Amount the participants can get. Its beneficial is the retirement happen during Great market conditions.

Disadvantages:

1. The benefits of the member during retirement is not defined.

2. During the recession, the Defined contribution pension plans are not useful because they don't give a guarantee of a certain benefit to the members.

jeff jeffy answered 2 years ago
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