article thumbnail

Defined Benefit vs. Defined Contribution: Choosing the Right Retirement ProgramĀ 

HR Professionals Magazine

In general, defined benefit (DB) plans come in two varieties: traditional pensions and cash-balance plans. defined contribution (DC) plans include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans. Examples of. Defined contribution plans do not have PBGC protection.

401(k) 40
article thumbnail

The Impact of Indexing: 13 Real World Examples

Money Talk

Pension COLAs - Pension benefits for some retirees are also indexed for inflation. An example is pensions for federal government workers and military retirees and disabled veterans. a $59 increase for every $1,000 of benefits) in 2022. Their COLA, like Social Security, is 5.9% (i.e.,

401(k) 227