Defined Benefit Plan Vs Defined Contribution Plan. My employer has a defined benefit plan where the CEO, CFO, and I are the only beneficiaries. A Defined Contribution plan requires you to put in your own money.
Under a defined contribution (DC) plan each employee has an account into which the employer and, if it is a contributory plan, the employee make regular contributions.
This video shows the difference between a defined-benefit pension plan and a defined-contribution plan.
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I know that if I worked until standard retirement age, this pension plan would probably be better for me than the average defined contribution plan. Defined benefit scheme is a type of pension scheme which ensures a particular level of income/benefit after retirement. Defined-benefit plans are funded by employers, while employees make contributions to defined-contribution plans to save for retirement.