Defined Contribution Pension Plan
In a defined contribution pension plan, the amount of the contributions is set in advance.
(Clark. Ian D., Greg Moran, Michael Skolnik and David Trick. 2009. Academic Transformation: The Forces Reshaping Higher Education in Ontario. Montreal; Kingston ON: McGill-Queen’s University Press.)
The amount of the eventual retirement income is not set in advance. A member's retirement income will depend on several factors, including the total amount accumulated in his or her account: the member's contributions, if any, the employer's contributions, sums transferred to the member's account, if any and interest earned.