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e employee has power to take investment decision that will in return have the opportunity to provide significant benefit in future to enjoy the high returned benefit plan that is not available in defined benefit plan. (Bodie, Marcus & Merton, 1988)

In defined contribution plan the cost of administration is reasonable to make this plan more portable as compare to defined benefit plan. The cost of defied benefit plan is not easy to calculate because it needs the software or formula implementation in order to measure the cost. In the contribution benefits there is an ease of cost administration.

There is an ease to choose the sponsor's liability in order to make investment and there is the ease to determine the sponsor responsibilities for contribution plan and the rights to make the major decisions regarding investment is centered on the decision of employee. In benefit plan the employer has most of the rights centered on it and the employee power is limited in deciding the contribution for the salary. (Clark, 1999).

In defined contribution plan the risk and return of investment has to bear by the employee or retiree and not by the employer but in defined benefit plan the most of the responsibilities have to bear by the employer to plan and implement the benefit plan for employ retirement.

The benefit plan is usually secured because there is no risk of investment and the return is certain as compare to contribution plan where there is the need to take investment decision and uncertainty is associated with investment so there is the association of risk with contribution plan investment which causes uncertainty of return.

Cash balance retirement
Cash balance retirement is the benefit plan which credits the account of employee with percentage of some amount employee's salary and the interest charges as well. Cash balance plans includes the fix rate of return that is credited to the employees account that can be change from year to year. It seems like a defined contribution plan but in actual it is defined benefit plan and the cash balance plan is mostly resulted from the conversion of traditional defined benefit plan which have many controversies that makes the conversion slow. Recently legislation has been passed to clear the process to plan sponsor in order to adopt cash balance plan. (Forman & Nixon, 2001).

Controversies related with cash balance retirement
Many controversies are relate to the cash balance plan as the changed in tradition defined benefit plan to the conversion in cash balance basically has some adverse effect on worker retirements benefits as the As the government Accountability Office of US which is the evaluation and investigating firm of US has released a report to show the effect of Cash balance plan as compare to traditional defined benefit plan and analyze that the cash balance plan has providing lower benefit plans for the workers as compare to the benefits provided to the workers in traditional benefit plan.

For example in cash balance retirement plan the benefits reduce more for the older workers as compare to the younger worker because the contribution for the older and younger workers are made in the same rate in cash balance plan and the amount contribution by the younger workers are accumulated more time before retirement because of long time period of stay in the job as compare to th本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。