Defined Contribution Pension Plan (Money Purchase Plan)
Definition of "Defined contribution pension plan (Money purchase plan)"
Retirement plan under which contributions are fixed in advance by formula, and benefits vary. These plans are often used by organizations that must know what the cost of employee benefits will be in the years ahead. For example, nonprofit organizations such as charities need to project future pension expenses that will not rise above a preset limit. This enables budgets to be established that provide guidelines for their solicitation of funds.
Popular Insurance Terms
Individual to whom rights to a benefit are assigned. A life insurance policy is assigned by the collateral borrower (assignor) to the collateral creditor (assignee) as security for a loan. ...
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