Explain the difference between a Defined Benefit Retirement Plan and a Defined Contribution Retirement plan?

In a Defined Benefit Retirement Plan the benefit that is payable is defined in terms of a unit benefit which is normally payable on a monthly basis in the form of an annuity at retirement. In a Defined Contribution Plan each participant has an account with a dollar balance and the benefit that is payable at retirement is limited to the dollar balance that is in the participant’s account.