1. How does a pension plan differ from a 401(k) plan? As an employee, would you rather have a pension plan or a 401(k) plan? Explain why. If you were an employer would your decision change? Explain why or why not.

2. Why is there so many companies no longer offer pensions to their employees? We all know that pensions are expensive, but why are they becoming cost prohibitive for companies?

3. What are the components of pension expense? How is the interest rate determined? Why are prior service costs amortized? How do the components of pension expense differ among the various types of contribution and benefit plans?

4. Explain how the very low interest rates we’ve experienced over the last 7-8 years have impacted pension funds (both the value of the funds and pension expense)?

5. What are the differences and similarities between a defined contribution plan and a defined benefit plan? As an employee, would you rather have a defined contribution plan or a defined benefit plan? Explain why. As an employer, would you rather offer a defined contribution plan or a defined benefit plan? Explain why.

6. So can anyone the class offer an opinion on whether there is an opportunity to save for a much healthier retirement through a 401(k) plan than what one might get with a pension?