The majority of union contracts include a pension plan that can best be described as a defined contribution plan.

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The majority of union contracts include a pension plan that can best be described as a defined benefit plan, not a defined contribution plan. In a defined benefit plan, the employer guarantees a set payout to the retiree based on a formula that considers factors such as years of service and final salary. In a defined contribution plan, such as a 401(k), the employer and employee contribute to an individual account, and the retiree's payout is based on the account balance at retirement.

The Majority of Union Contracts Include a Pension Plan That