• BlaestEgnen@feddit.dk
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    3 days ago

    But that’s two different funding mechanics.

    Defined benefit, buys bonds. So the government wants to build a metro in Sydney, borrow the money and own 100%.

    Defined contribution, buys ownership. So the government wants to build a metro in Sydney, sells 40% ownership to fund the building phase.

    • hitmyspot@aussie.zone
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      3 days ago

      Yes, different mechanisms and different outcomes. However, that doesn’t make one better for business as you mentioned. They just act in different ways for all parties.