Definition
Defined contribution plan is the retirement plan where contributions are specified but benefits depend on investment performance. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Defined contribution plan?” The useful answer is concrete: retirement plan where contributions are specified but benefits depend on investment performance. A slide title is not an answer.
Common mistake
Using Defined contribution plan as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Defined benefit plan
Retirement plan where benefits are predetermined based on salary and years of service.
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Defeasance
Legal process of discharging a debt obligation before its maturity date.
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Deflation
Economic condition characterized by a general decrease in prices over time.
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Delegation
Process of assigning tasks and authority to subordinates while maintaining accountability.
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