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defined benefit and defined contribution

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What is the difference between defined benefit and defined contribution?

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What is the difference between defined benefit and defined contribution?

A defined contribution plan provides an individual account for each participant. The benefits are based on the amount contributed and are also affected by income, expenses, gains and loses. Some examples of defined contribution plans include 401(K) plans, 403(b) plans, employee stock ownership plans and profit sharing plans.

A defined benefit plan promises the participant a specific monthly benefit at retirement and may state this as an exact dollar amount. Monthly benefits could also be calculated through a formula that considers a participants salary and service. A participant is generally not required to make contributions in a private sector fund but most public sector funds require employee contributions. Unlike defined contribution plans, the participant is not required to make investment decisions. A defined benefit plan is sometimes referred to as a fully funded pension plan.

Source: http://retireplan.about.com/cs/retirement/a/aa_defined_a5.htm

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What is the difference between defined benefit and defined contribution?

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Pension Fund

Revise the example paper of no more than 1,050 words that answers the following questions for each state: (use the example paper attached as a reference)

• What type of pension fund does the state provide to employees
• How is the pension fund actually funded - who pays for it
• Is the pension fully funded
• What pay and benefits are provided by the pension
• How much is currently in the pension fund
• What is the current pension liability for the state

Compare the different pension funds provided by the group and rank order the funds in terms of the best and worse pensions among the group. Include this comparison in the paper above.

The Pension Funds are as follows.

State of South Carolina
Commonwealth of VA
City of San Jose
Gadsden Independent School District

I attached the sources of Revenue in case you need it.

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