Type of Defined Contribution Plan in which employers set a contribution formula designed to target a specific benefit at retirement (i.e., 50% of pay). Conceptually similar to a Defined Benefit Plan, however, the plan does not guarantee the amount in the employee's account at retirement. Employer contributions are required, not discretionary.
a defined contribution qualified retirement plan whereby the annual employer contribution is based on the amount required to accumulate a fund that will pay a target benefit at the employee's normal retirement age
a defined contribution plan that acts much more like a defined benefit plan
a defined contribution plan with several characteristics of a defined benefit plan
a defined contribution plan with some defined benefit plan features
a hybrid of a Money Purchase Plan and a Defined benefit Plan
a money purchase pension plan under which contributions to an employee's account are determined by reference to the amounts necessary to fund the employee's stated benefit under the plan
a plan in which you, as the employer, establish a target benefit for your employees, but where each employee's actual pension is based on the amount in the employee's individual account
a special type of money purchase pension plan that incorporates some of the attributes of a defined benefit plan
A Target Benefit Plan is a Defined Contribution Plan in which the employer's required annual contribution is an actuarial calculation based on the number of years remaining to the participant's retirement date and the target benefit under the plan.
A defined contribution plan wherein the employer sets a target benefit for employees based on actuarial assumptions that project the annual funding need to reach that benefit. The actual earnings on the individual accounts may differ from the estimated earnings used in the assumptions.
A variation of a defined benefit plan and a money purchase plan. Similar to a defined benefit plan, the annual contribution is determined by the amount needed each year to accumulate a fund sufficient to pay a targeted retirement benefit to each participant at retirement. Similar to a money purchase plan, contributions and earnings are allocated to separate accounts maintained for each participant and benefits to be paid at retirement are not guaranteed.
A benefit plan that is similar to a defined benefit plan in design in that contributions are based on projected retirement benefits. However, unlike a defined benefit plan, the benefits provided to participants at retirement are based on the performance of the investments, and therefore are not guaranteed.