NO.PZ2019100901000013
问题如下：
Fiona Heselwith is a 40-year-old US citizen who has accepted a job with Lyricul, LLC, a UK-based company. Her benefits package includes a retirement savings plan. The company offers both a defined benefit (DB) plan and a defined contribution (DC) plan but stipulates that employees must choose one plan and remain with that plan throughout their term of employment.
The DB plan is fully funded and provides full vesting after five years. The benefit formula for monthly payments upon retirement is calculated as follows:
Final monthly salary × Benefit percentage of 2% × Number of years of service
The final monthly salary is equal to average monthly earnings for the last five financial years immediately prior to the retirement date
The DC plan contributes 12% of annual salary into the plan each year and is also fully vested after five years. Lyricul offers its DC plan participants a series of life-cycle funds as investment choices. Heselwith could choose a fund with a target date matching her planned retirement date. She would be able to make additional contributions from her salary if she chooses
Discuss the features that Heselwith should consider in evaluating the two plans with respect to the following:
i. Benefit payments
ii. Contributions
iii. Shortfall risk
iv. Mortality/longevity risks
选项：
解释：
benefit payment:
DB: payment is equal to final monthly salary × Benefit percentage of 2% × Number of years of service;
DC: unkown, it's depend on contribution and investment performance
contribution:
DB: unknown
DC: clearly defined
shortfall risk:
DB: bear by employer
DC: bear by employee
Mortality/Longevity risk
DB: pool mortality risk, employee bear mortality risk
DC: bear longevity risk
