What is the difference between a defined benefit (pension) and defined contribution?

Published 11/30/2015 01:27 PM   |    Updated 04/01/2016 12:40 PM
What is the difference between a defined benefit (pension) and defined contribution?
A defined benefit (pension) gives you a monthly benefit at retirement for the rest of your life. The benefit is usually calculated based on years of service and your salary. A defined contribution plan has a retirement savings account (like a 401K), that gives you a lump sum at retirement. This benefit amount is based on how much you and/or your employer put into the account. Please contact questions@inprs.in.gov if you have any additional questions.
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