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Retirement

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Defined Benefit Plan (DB Plan) vs.
Defined Contribution Plan (DC Plan)

Defined Benefit Plan: (URS Plan)

1.Benefit at retirement determined by a preset formula
     - Years of service with employer
     - Final average salary over set period of time
2.Contributions made become part of the System’s trust fund and are invested by professionals
3.Funds in the System’s investment portfolio are used to pay retirement, disability, and survivor benefits
4.After retirement, the DB Plan will provide you with a GUARANTEED lifetime income, regardless of how long you live
 

Defined Contribution Plan:

1.Benefit is determined by the amount of assets in your personal account at the time of retirement
2.You determine how these assets are to be distributed in retirement years
3.You have the primary responsibility to determine how these funds are invested
4.Your investment decisions and factors, such as the general state of the economy, influence the amount of funds available at the time of retirement
5.Poor investment choices have a profound impact on your retirement benefit