Defined Benefit and Defined Contribution Plan Design

These pages group pension plan-design terms that explain how benefits, contributions, and payout formulas differ across retirement plans.

In this section

• Deferred Contribution Plan: Tax-Deferred Profit-Sharing Contributions
  A comprehensive overview of Deferred Contribution Plans, whereby unused deductions can be carried forward and utilized in future profit-sharing contributions, optimizing tax benefits for employers.
• Defined-Benefit Pension Plan
  Pension arrangement that promises a specified retirement benefit, usually based on salary, service, and plan formula.
• Defined-Contribution Pension Plan
  Retirement plan in which contributions are specified but the final benefit depends on investment performance and account value.
• Money Purchase Plan: Definition, Benefits, and How It Works
  Explore the comprehensive definition, benefits, and the working mechanism of a Money Purchase Plan, a type of employee retirement benefit plan.
• Variable Benefit Plan: Overview, Historical Context, and Investment Impact
  A comprehensive exploration of variable-benefit plans, including their definition, history, investment impact, and special considerations for retirement savings.