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defined contribution plan

noun

: a pension plan in which the amount of the contributions made by the employer is fixed in advance and earnings are distributed proportionately

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Cite this Entry

“Defined contribution plan.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/defined%20contribution%20plan. Accessed 26 Nov. 2025.

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