defined contribution retirement plan requiring fixed or specified contributions usually based on an employee's salary.
A defined contribution plan, other than a profit-sharing plan, that provides for an individual account for each participant and for fixed or determinable contributions by the employer. So called because the amount of the employee's retirement benefits will be determined by the value of the cashed-out investment purchased with contributions made on the employee’s behalf during employment. Employers must contribute a fixed amount annually to these plans. A-H R-Z net asset value The current worth of a share in a particular fund, calculated by totaling the market value of all securities owned by the fund, plus cash and other assets, subtracting any liabilities and dividing the result by the number of fund shares outstanding. Share prices increase or decrease based on activity in the underlying securities of the fund. Also called “NAV”, “share price” or “share value.
Type of Defined Contribution Plan in which the amount of the contribution is specificed as a fixed percent of compensation and the employer must contribute that amount annually, regardless of profits. Also referred to as a 401(a) Plan created under Section 401(a) of the Internal Revenue Code.
A type of defined contribution plan in which the employer’s contributions are determined for and allocated, with respect to specific individuals, usually as a percentage of compensation. The benefits for each employee are the amounts that can be provided by the sums contributed to his or her account. Unlike a profit-sharing plan, however, forfeitures are not added to participants’ accounts; they are used to reduce the employer’s contributions. An individual account plan, as defined in Section 3(34) of ERISA, other than a profit-sharing plan or a stock bonus plan, in which the employer’s contributions are fixed or determinable.
a DC Plan in which the company's contributions are mandatory and are usual based solely on a participant's compensation
a defined contribution plan in which the employer commits to contribute a fixed percentage of payroll on behalf of eligible employees each year
a defined contribution retirement plan that requires the employer to contribute a fixed percentage of each employee's salary every year the plan is in effect, regardless of how well the company does in a given year
a profit sharing plan with a required contribution
a qualified retirement plan that requires employers to make a mandatory tax-deductible contribution on behalf of their employees
Type of Pension Plan where the employer contributes a fixed amount per hour worked. The amount of retirement income will depend on how much is contributed by the employer and the interest earned on contributions. The NDT Industry Pension Plan is a Money Purchase Plan.
Please see the definition for Defined Contributed Pension Scheme.
A pension plan on which contributions are defined rather than benefits.
A pension investment plan in which in the participant contributes some part and the firm contributes at the same or a different rate.
A type of qualified plan under which contributions are fixed amounts or fixed percentages of the employees' salary. An employee's benefits are provided in whatever amount the accumulated or current contributions will produce for him or her.
A Money Purchase Plan is a plan where employer's contributions are set when the plan is established (i.e. usually a fixed percentage of compensation). Contributions do not depend on whether the employer has profits.
A qualified defined contribution plan in which the employer is required to make an annual contribution to each employee's account regardless of the firm's profitability for the year.
Type of occupational pension scheme, also known as Defined Contribution. You and your employer contribute to the scheme, which is then invested. The value of the pension is based on the contributions paid and how well the investments have performed. Your pension value is not guaranteed as it partly depends upon investment performance.
defined benefit contribution plan in which the participant contributes some part and the firm contributes at the same or a different rate. Also called an individual account plan.