(USA) A retirement plan in which the employer's obligation is to make a definite contribution into the plan and the employee bears the risk of investment performance by the retirement plan. In the UK, such plans are known as defined contribution pensions or personal pensions. A defined contribution plan is the opposite of a defined benefit plan where the employer's obligation is to make a definite payment to the retired employee and the employer bears the risk of investment performance by the retirement plan. In the UK, this is known as a defined benefit or final salary pension scheme.