Defined Contribution (DC Plan)

The employer and employee contributions are specified in the contract and the deposits accumulate with their respective investment returns. At retirement the employee can purchase an income stream through a number of retirement vehicles (i.e. an annuity). The employer does not know the amount of retirement income that will be available to the employee because that is dependent on how much was accumulated over the employment years. However, the employer will be aware of their contribution cost, hence expression: defined contribution.

For more information on this product, please contact our office