7 - 4 Short Paper: Creating a Matrix
What are the primary differences between a defined benefit plan and a defined contribution plan? In a brief essay, create a matrix and include discussion about the following questions:
- Who bears the risk of investment?
- What are the actuarial complexities?
- What is fixed, contributions or benefits?
- Are there separate accounts?
- Is the plan insured?
- Is the plan better for older or for younger employees?