The major difference(s) between defined benefit (DB) plans and defined contribution (DC) plans is (are) Forfeitures may be used to cover plan costs or allocated to employee retirement accounts in DC plans but may only be used to cover plan costs in DB plans. A DC plan receives some protection from the PBGC; a DB plan does not receive PBGC protection A DC plan allows credit to be given to employees for prior service earned before the plan is established; DB plan does not the employer bears investment risk in a DC plan; risk remains with an employee in a DB plan