Defined Contribution

See how PlanSource makes it easy for you to set up and administer a defined contribution benefits model.

With a defined contribution, companies provide one lump sum of money and employees get to decide how to spend it on a selection of benefits options. Much like a gift card that you can use at any store in a mall, a defined contribution is like a gift card that employees can use to purchase a variety of different benefits. The PlanSource system allows you to set up defined contribution according to your organization’s specific needs and adjust the amount (called employer contribution credits) you will contribute to various employee groups. As employees shop for benefits, they use their credits along the way and can see how the credits are allocated to certain benefits types.