Contributory Pension Plan

A pension where the pensioner (or employee) must make contributions. The employer often makes matching contributions to increase the value of the pension plan. Most pensions are contributory pension plans. See also: Noncontributory Pension Plan.

contributory pension plan

A pension plan in which the participating employees are required to support the plan with contributions. Compare noncontributory pension plan.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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