Definitions for "Defined contribution pension plan"
A pension plan that specifies the amount of annual contributions that the plan sponsor will make on behalf of a plan participant. A defined contribution plan does not guarantee a specific amount of retirement benefits. A participant's benefits at retirement are based on the amount that has been contributed to the participant's account, plus investment earnings. Contrast with defined benefit pension plan.----------[ Back
A pension plan that provides a pension based on the contributions made by the plan member and the employer and the interest earned on those contributions. (See Defined Benefit Pension Plan)
A retirement plan that does not specify the amount that a retiree will receive. Rather, the employer's obligation is to contribute a specific amount into a fund to be used for payments to retirees. To Top