Defined contribution plan meaning in English

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Definition

a defined contribution plan: a fixed pension scheme, a system in which employers pay a fixed amount regularly to prepare their employees for retirement idiom

Examples

"The 401(k) plan is a "defined contribution plan"."

Exercise 1

A defined contribution plan means:

Future generations will pay for Hannah's retirement.

The money Hannah pays into the plan is being saved for her own retirement.

Delavigne is paying into the plan and will cover all costs for Hannah's retirement.

The money Hannah pays into the plan is paying for today's pensioners.

I don't know

A defined contribution plan means:

Future generations will pay for Hannah's retirement.

This is incorrect. Hannah is paying for her own retirement.

The money Hannah pays into the plan is being saved for her own retirement.

This is the right choice. Icarus explains that Hannah can collect the money she pays into the pension fund when she retires and that it won't go to today's old people.

Delavigne is paying into the plan and will cover all costs for Hannah's retirement.

This is not the correct choice. Although Delavigne is paying some of Hannah's retirement, the company is not paying for all of it. Unfortunately for Hannah!

The money Hannah pays into the plan is paying for today's pensioners.

This is not the right choice. Hannah is paying for her own retirement.

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