Most employers prefer defined contribution pension plans to defined benefit plans.

Question

Quizplus · Accepted Answer

Defined contribution pension plans shift the investment and financial risk from the employer to the employee, and are generally considered to be more cost-effective for employers. Defined benefit plans, on the other hand, typically come with higher costs and greater financial obligations for employers. Therefore, most employers prefer defined contribution pension plans.

Most Employers Prefer Defined Contribution Pension Plans to Defined Benefit