Originally Posted by
crjav8er
I know there used to be a thread about this but I just can't find it. Could someone please explain to me what the difference between an A fund and a B fund is? Just curious.
An A-plan is a defined benefit pension. It's basically a promise to pay you a specified amount per month in retirement.
A B-Plan is a defined contribution pension. Your employer puts a specific amount of money into some sort of investment program, usually once a month. You own it.