Definitions for "Defined Contribution"
A retirement plan under which the annual contributions made by the employer or employee are generally stated as a fixed percentage of the employee's compensation or company profits. The amount of retirement benefits is not guaranteed; rather, it depends upon the investment performance of the employee's account.
Retirement plan which provides an individual account for each eligible participant including a participant's required contribution,an employers contribution and the earnings on those contributions.
A plan that provides an individual account for each participant and benefits based solely on (1) the amounts contributed to the participant's account plus (2) any income, expense, gains and losses, and reallocated forfeitures.