as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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name five common types of pension funds
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the five common types of pension funds are defined benefit plans, defined contribution plans, hybrid pension plans, cash balance plans, and 401(k) plans. defined benefit plans provide a predetermined annual income based on tenure of service and salary. defined contribution plans involve contributions of a specified sum to an individual retirement account or pension fund. hybrid pension plans combine features of both defined benefit and defined contribution plans. cash balance plans are a hybrid plan and both employers and employees can make contributions. lastly, 401(k) plans offer tax incentives for contribution and deferred taxation of withdrawals.
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