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
Educational organization for insurance women whose objective is to further the interests of these women through education and adherence to professional ethics. ...
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Contributions (under qualified employee benefit plans, such as pensions and health insurance) made by an employer on behalf of employees, deducted as a business expense for tax purposes. ...
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Concealment of the actual fact. For example, an insurance agent tells a prospective insured that a policy provides a particular benefit when in actual fact this benefit is not in the ...
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