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What is Defined Contribution Plan in HRM? PDF Download

Learn Defined Contribution Plan definition in hrm with explanation to study “What is Defined Contribution Plan”. Study defined contribution plan explanation with HRM terms to review HRM course for online MBA programs.

Defined Contribution Plan Definition

  • Retirement program in which the employer makes an annual payment to an employee's pension account.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Defined Contribution Plan Explanation

A defined contribution plan (DC) plan is retirement plan that is commonly charge conceded, similar to an, in which representatives contribute a fixed sum or a level of their checks to a record that is planned to finance their retirements. The support organization will now and again coordinate a bit of representative commitments as an additional advantage. These plans place limitations that control when and how every representative can pull back from these records without punishments. Characterized commitment plans take pre-charge dollars and enable them to develop in capital market ventures on an assessment conceded premise. This implies personal duty will at last be paid on withdrawals, yet not until retirement age. There is no real way to know how much a characterized commitment plan will at last give the representative after resigning, as commitment levels can change, and the profits on the ventures may go here and there throughout the years.

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