Akademik

money purchase plan
USA
money purchase plan, Also known as a money purchase pension plan.
A defined contribution plan that provides for an individual account for each participant and for fixed employer contributions. Benefits under a money purchase plan are generally distributed as annuity payments over the remainder of the participant's lifetime. A plan may provide for additional forms of payment.
Although they are defined contribution plans, money purchase plans are subject to the annuity rules and funding rules applicable to defined benefit plans under the Employee Retirement Income Security Act of 1974 and Internal Revenue Code.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.