The different factors to consider when valuing lost retirement benefits: Defined benefit plans vs. Defined Contribution Plans

A Comparsion of the different types of retirment plans (See table below)

Valuation Factor	Defined Benefit	Defined Contribution - 401k
Determined in advance	Benefit after retirement	Contributions while working
Payment in Retirement	Determined by employer	Dependent on investment returns
Vesting Period	Usually 5 years	Usually 0-2 years
Funding	Employer	Employre + Employee
Portability	Difficult to move to new employer	Easy
Control of assets	Employer	Employee
Investment risk	Employer	Employee
Risk of default	PBGC protects some funds to some degree	Assets belong to employee; employer default not an issue