Which of the following is the type of retirement plan that does not define the eventual benefit amount,but only the periodic employer contribution to the plan?

Question

Quizplus · Accepted Answer

A defined contribution pension plan is a retirement plan where the employer contributes a set amount of money into the employee's account, but the eventual benefit amount is not defined. The benefit amount will depend on investment performance and employee contributions (if any). This is different from a defined benefit pension plan, where the benefit amount is predetermined based on a formula that considers factors such as length of service and salary.

Which of the Following Is the Type of Retirement Plan