Human Resource Management Discuss and Essay

Total Length: 440 words ( 1 double-spaced pages)

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Defined contribution plans, such as a 401K, in contrast, are far riskier for the employee although they may yield higher rates of return. "There is no way to know how much the plan will ultimately give the employee upon retiring. The amount contributed is fixed, but the benefit is not" and is dependant upon the performance of the fund," although as with defined benefit and cash balance plans, there are restrictions regarding when these plans can be withdrawn (Defined contribution, 2009, Invesetopedia).
The benefit ceases when the account balance is depleted, regardless of the retiree's age, personal circumstances, previous salary and position, or years of service to the company (Defined Benefit Plans (DB) vs. Defined Contribution Plans (DC), 2009).

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