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Pension Plans

What are defined benefit and defined contribution pension plans and do companies regularly do a lot of switching between the two plans and if so why?

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401(K) plan (like 403(b) plans, employee stock ownership plans and profit sharing plans) is a defined contribution plan. 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.

A defined benefit plan (pension plan) promises the participant a specific monthly benefit at retirement and may state this as an exact dollar ...