Megaintel Sdn. Bhd. is a new small-sized company. The company, which has 28 employees, is in the process of establishing a retirement plan. The company is considering several qualified retirement plans including (1) defined-contribution plan and (2) defined-benefit plan.

a. Distinguish between a defined-benefits plan and a defined-contribution plan.

b. If Megaintel Sdn. Bhd chose a defined-benefits plan, what are the types of defined-benefit formula that can be used by the company?

c. What are two main advantages of a defined-benefits plan compared to a defined-contribution plan?