I am a new employee and I was wondering if someone can help me understand what this defined contribution retirement plan means for me.
My org says after 1 year of service with 1000 hours and being 21 I can participate in the defined contribution retirement plan. The contribution schedule at first is:
- 0-5 years of vesting service = 3.5%
- 6-10 years of vesting = 4.5
- 11+ = 6%
Then for the 403b retirement it says after 2 years of employment 500 hours and age 21 I am eligible for that. It says 50% of the first 3% employee contribution (1.5%). I'm 100% vested after 2 years 500 hours.
What is the defined contribution? I currently am funding my retirement Roth 403b and contributing 15%.