The defined-contribution pension plan is a new hybrid plan that combines features of the defined-benefit plan and the defined-contribution plan.

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A defined-contribution pension plan is not a hybrid but a type of retirement plan where the amount contributed to an employee's retirement fund is defined, but the benefit received upon retirement is not guaranteed and depends on the account's investment performance. Hybrid plans are a different category that combines features of both defined-benefit and defined-contribution plans.

The Defined-Contribution Pension Plan Is a New Hybrid Plan That