What does Defined Contribution Plan mean? Read on to discover the definition & meaning of the term Defined Contribution Plan - to help you better understand the language used in insurance policies.
Defined Contribution Plan
A tax-qualified retirement plan in which annual contributions are determined by a formula set forth in the plan. Benefits paid to a participant vary with the amount of contributions made on the participant's behalf and the length of service under the plan.
We hope the you have a better understanding of the meaning of Defined Contribution Plan.