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C232--10.4

WGU HR Section 10.4

QuestionAnswer
What are two major types of retirement plans? 1) defined benefit plans, and 2) defined contribution plans.
What is a "defined benefit plan"? A defined benefit plan is a retirement plan in which the employer commits (and pays) a specific monthly benefit (or amount) to the employee when the employee retires.
What is a "Defined Contribution Plan"? In a defined contribution plan, the employer pays a specific amount, or contribution, to an employee's retirement during each pay period that the employee is with the firm.
Created by: jpayn11
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