What is the difference between the Defined Benefit Plans (Coordinated Plan) versus the Defined Contribution Plan?
In the Defined Contribution Plan you choose how this money is invested and the benefit is determined by the performance of those investments. The Defined Benefit Plan (Coordinated Plan) is a traditional pension plan whereby the benefit is determined by a formula based on years of public service and average salary during the highest consecutive five-year salary. While the Coordinated Plan provides for lifetime benefits with annual adjustments, the DCP benefit is a lump-sum amount you can reinvest as you see fit.
