Defined Contribution Fund - A superannuation
fund in which the amount of contribution payable (as
distinct from the end benefit) is defined (eg. 10%
of salary). In these funds, the benefit payable to
a member on retirement constitutes the aggregate of
contributions to the fund (both employer and employee)
in respect of the member, plus the investment earnings
on those contributions. Unlike a defined benefit fund,
the investment risk in a defined contribution fund
is borne by the fund members. (Also known as Accumulation
Fund).
