DB & DC: Benefits and Disadvantages
| Feature | Defined Benefit |
Defined Contribution |
| Guaranteed, predictable benefits | Yes | No |
| Provides higher payout at retirement | Yes | No |
| Less risk | Yes | No |
| Better earnings/lower fees | Yes | No |
| Employer bears investment risk | Yes | No |
| Professional investment managers | Yes | Only if you hire someone |
| Early retirement features (including incentives) | Yes | No |
| Benefit improvements | Yes | No |
| COLAs | Yes | No |
| Portability | If purchase service credit | Yes |
| Attract people to public service | Yes | No |
| Low administrative costs | Yes | No |
| Comprehensive coverage, including disability, death, early retirement and past service benefits | Yes | No |
| Assets collectively invested | Yes | No |