Legal Definitions - noncontributory pension plan

A noncontributory pension plan is a type of pension plan where only the employer contributes to the plan. This means that the employee does not have to contribute any money towards their retirement savings.

For example, if an employer offers a noncontributory pension plan to their employees, they will be responsible for funding the plan entirely. The employees will not have to contribute any portion of their salary towards the plan.

Noncontributory pension plans are different from contributory pension plans, where both the employer and employee contribute to the plan. They are also different from defined-contribution pension plans, where the employer contributes a set amount of money to the plan, but the employee is responsible for managing their own investments.

Overall, noncontributory pension plans can be a valuable benefit for employees, as they allow them to save for retirement without having to contribute any of their own money.