A defined contribution (DC) plan is an employer-sponsored retirement plan in which the employer contributes a specific dollar amount or percentage of pay into a retirement account for the employee In some DC plans, such as Sec 401(k) plans, the employee also defers some of his or her salary into the account In participant-directed plans, the employee controls how the money in the retirement account is invested In a DC plan, the employee bears the investment risk The benefit under the plan is whatever amount is held in the retirement account, which depends on the amounts contributed and investment gains and losses Defined contribution plans are not insured by the Pension Benefit Guaranty Corporation