What is the 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 called?

Question

Quizplus · Accepted Answer

A defined contribution pension plan is one in which the employer and employee make contributions to the plan, but the eventual pension benefit is not guaranteed. The benefits will depend on how well the investments in the plan perform. This is different from a defined benefit pension plan, which guarantees a specific benefit amount upon retirement.

What Is the Type of Retirement Plan That Does Not