A ____________ pension plan usually specifies the employer's contribution but cannot predetermine the employee's actual pension benefit.

Question

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A defined contribution pension plan specifies the employer's contribution or the contribution that the employer will make to an employee's pension account. However, it does not predetermine the employee's actual pension benefit because the benefit will depend on the performance of the pension fund and the amount of contributions made by the employee. In contrast, a defined benefit plan specifies the amount of the pension benefit that an employee will receive upon retirement, regardless of the performance of the pension fund or the amount of contributions made.

A ____________ Pension Plan Usually Specifies the Employer's Contribution but Cannot