What Kind Of Retirement Plan Is PERS? 
Many retirement plans share that acronym . There are two basic types of retirement plans . The first is a defined benefit plan . A defined benefit plan computes the retirement benefit based upon a formula published in the plan . It normally takes into consideration years of service , highest income and age . If employees contribute the contribution is normally a percentage of their income . The second is a defined contribution plan . This plan normally allows the employee to contribute to their own retirement program . The employer may make an annual contribution to the plan or may match employee contributions to a certain limit . The benefit is then computed based upon the value of the fund at the time of retirement or may often be taken in a lump sum . 