Defined Contribution

Views Updated: Dec 15, 2025

Abbreviation

Pronunciation

/dɪˈfaɪnd ˌkɑntrəˈbjuʃən/

Private health insurance and Medicare should increasingly be based on a defined contribution model.
Defined contribution plans can reduce the taxes of workers and employers.
Some even advocate a complete switch to a ( collective ) defined contribution system.
Defined contribution plans do not offer guaranteed the benefits.
That responsibility is not absolved when companies shift from defined benefit to defined contribution plans.

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