answer the following question
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Are employees more likely to favor defined contribution plans over defined benefit plans? How about employers? Explain your answer.
example answer … I think employees are more likely to favor the defined benefit plan and employers would more likely prefer the defined contribution plan. With a defined benefit plan, the employer contributes to the employee’s guaranteed retirement program on behalf of the employee which is calculated based upon age, years, of service, etc., therefore, the risk is placed on the employer and not the employee. With the defined contribution plan, the employer and employee both make annual contributions into separate accounts, therefore, the risk is placed on both the employer and the employee and this plan doesn’t guarantee a certain amount due to this risk.
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