A type of retirement plan that does not guarantee the eventual pension benefit an employee will receive at retirement, but only what the employee and employer contributions to the plan will be, is called a

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A defined contribution pension plan only guarantees the amount of contributions made by the employee and employer, and the eventual pension benefit is dependent on the performance of the investments in the plan. Government-sponsored plans, deferred profit-sharing plans, and retirement plans can be defined contribution or defined benefit plans. A defined benefit pension plan guarantees a specific pension benefit at retirement.

A Type of Retirement Plan That Does Not Guarantee the Eventual