What is defined contribution?
With a defined contribution, companies provide one lump sum of money and YOU get to decide how to spend it on a selection of benefits options.
Traditionally, companies decided each year how much they want to contribute toward each benefit that they offer to employees. But with a defined contribution, you have more control over how you use the money provided by your employer, because you get to choose how to spend that money across multiple benefits. Much like a gift card that you can use at any store in a mall, a defined contribution is like a gift card from your employer that you can use to purchase a variety of different benefits. However, your employer may have specific rules about how the money can be used, so check with HR to learn more.