What is a disadvantage of defined benefit plans?

The selected answer highlights a common disadvantage of defined benefit plans. One key concern for employees is that their contributions to the plan may be deducted from their earnings, which can reduce their take-home pay. While these deductions are intended to fund future retirement benefits, some employees may feel a pinch in their immediate finances due to this perceived loss of current earnings.

In addition to this, defined benefit plans also carry other inherent disadvantages, such as complexities in plan administration and the potential for less predictability in the value of future benefits based on the financial health of the plan sponsor. However, the essence of this question revolves around the immediate impact on employee earnings, which makes option B a relevant disadvantage.

In comparison, features such as guaranteed benefits regardless of tenure (which some might see as a positive aspect) and lower tax implications also stand out in this context. While easy administration can be an advantageous characteristic, the deductions affecting employee earnings present a more relatable downside from an employee perspective.