For Risk Management and Insurance
What are the primary differences between a defined benefit plan and a defined contribution plan? In a brief essay, create a matrix and include discussion about the following questions:
a. Who bears the risk of investment?
b. What are the actuarial complexities?
c. What is fixed, contributions or benefits?
d. Are there separate accounts?
e. Is the plan insured?
f. Is the plan better for older or for younger employees?
For additional details, please refer to the Short Paper/Case Study Rubric document in the Assignment Guidelines and Rubrics section of the course.