Defined Contribution

What is a Defined Contribution?

 

A ‘Defined Contribution’ is a pension arrangement in which the contribution provided by the company is well-defined and fixed annually. Usually, this contribution tends to be not set as the contributions change depending on various factors.

 

The employees benefit from this scheme as the company is bound to contribute the pre-defined amount even if the employee’s salary has been lower than regular for any reason.

 

Similarly, it also benefits the company as the risks involved are lesser when compared to other pension plans. Hence, there has been a rise in the popularity of this plan in recent times.

More HR Terms

Benchmarking

What is Benchmarking?   ‘Benchmarking’ is the concept of measuring something against a set of standard metrics to set a base score. Benchmarks can be

Factor Comparison

What is Factor Comparison ? ‘Factor Comparison’ is a scientific technique of ranking the job roles based on the individual factors rather than ranking it

Managed Care

What is Managed Care?   ‘Managed Care’ refers to the healthcare option provided by the companies which manage the healthcare of the employees with the

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’