Pension plans improve productivity and reduce turnover but are a huge corporate liability. Hence, financial reporting of pensions is both a social and economic responsibility. 2 major types of employee pension plans are defined benefit plans and defined contribution plans.

Discuss any 2 advantages of a defined benefit plan and defined contribution plan.

Discuss any 2 disadvantages of a defined benefit plan and defined contribution plan.

If you could only select either a defined benefit plan or a defined contribution plan, which would you choose? Why?