Defined benefit plan:-
Advantage:-
1. Defined benefits
2.Employer contributes everything.
3. Beneficiary don't have to look after the plan about how it is being invested and how it is performing.
Disadvantage:-
1.Minimum service is required.
2.Sometimes they are not backed by unlimited guarantee in case of any adverse volatility and hence fails.
Defined Contribution Plan
Advantage:-
1. Flexibility in investment, ie investment depends upon the capacity of employee.
2. Tax saving advantage to employee.
Disadvantage:-
1. Require efficient management of funds.
2. Employees tend to avoid contribution as they are not worried about future
If there is an option to choose one plan, then I would personally choose Defined benefit plan because of less tension about the performance of fund and guaranteed payback.
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