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What are the different types of pension plans?
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15th Dec 2009 by David Becker
There are two main types of pension plans which are defined benefit plans and defined contribution plans. A defined benefit plan is a plan where an employer will provide a specific amount of benefit to the employee upon retirement. For example, in a defined benefit plan an employee is receive 2,000 a month from the age of 62 to he passes away. In some define benefit plans, the employer will give the employee the opportunity to take the accrued money as a lump some. In a define contribution plan, the employer will give a define amount of money upfront to the employee, and the employee will have options on how to invest the money until the required retirement age.
There are two main types of pension plans which are defined benefit plans and defined contribution plans. A defined benefit plan is a plan where an employer will provide a specific amount of benefit to the employee upon retirement. For example, in a defined benefit plan an employee is receive 2,000 a month from the age of 62 to he passes away. In some define benefit plans, the employer will give the employee the opportunity to take the accrued money as a lump some. In a define contribution plan, the employer will give a define amount of money upfront to the employee, and the employee will have options on how to invest the money until the required retirement age.
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10th Dec 2009 In Retirement
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Subjects: pension plans,