Retirement Plan

Retirement Plan

Introduction

Defined Benefit plan and defined contributions plan both tends to serve as pension plans and aims to inject a feeling of social security in the employee that he or she will have a covering plan in the days when he or she will be requiring it. The defined benefit plan tends to identify the benefit for an employee over the age of retirement itself. The defined benefit plan tends to inculcate different factors such as the salary of the employee, years of service, retirement age and other similar factors. Whereas, defined contribution plan tends to define the contribution but ...