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Financial Management

Discuss and contrast "defined benefit", "defined contribution", and "cash balance pension plans".

Which plan would be most beneficial to you?

Fundamentals of Human Resource Management, 2nd Edition, The McGraw-Hill Companies, Inc 2007.

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The response addresses the queries posted in 573 words with references.

// Pension plans are directed to the employees working in the organizations. These plans mobilize the employees towards best efforts and provide them security after retirement. The employer may carry out these pension plans in three forms, such as contrast defined benefit, defined contribution and cash balance pension plans. This paper will help to understand all the three types of plans.//

Pension plan refers to the plan provided to the people, along with the income in regular installment basis when they are no longer earning a regular income from employment. A contract defined benefit plan is a plan benefit which is provided at the time of retirement with the installments, on a set formula rather than investment returns. It may include employee's pay, year of employment, age at retirement and other factors. This type of plan is popular in union employees, as it includes the ...

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The response addresses the queries posted in 573 words with references.

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