Definitions for "Target Benefit Plan"
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