Defined contribution plan

{
  "id": "MLC-T-ECS-000488",
  "term": "Defined contribution plan",
  "field": "Economic statistics",
  "definition": "Retirement plan that specifies the level of employer and employee contributions and places those contributions into individual employee accounts.\n\nNote: Individual accounts are set up for participants, and benefits are based on the amounts credited to these accounts (through employer contributions and, if applicable, employee contributions) plus any investment earnings on the money in the account. Only employer contributions to the account are guaranteed, not the future benefits. In defined contribution plans, future benefits fluctuate on the basis of investment earnings. The most common type of defined contribution plan is a savings and thrift plan. Under this type of plan, the employee contributes a predetermined portion of his or her (usually pretax) earnings to an individual account, all or part of which is matched by the employer.",
  "references": [
    "BLS Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/defined-contribution-plan/"
}