A Defined Contribution Hybrid Plan primarily combines which two plan structures?

A Defined Contribution Hybrid Plan primarily combines features of a defined contribution plan and attributes of a defined benefit plan. This type of plan can provide individuals with the potential for a predictable retirement benefit similar to that offered by a defined benefit plan while still allowing for contributions to be made into individual accounts, as seen in defined contribution plans.

The hybrid model typically embodies the risk-sharing characteristics of defined benefit plans, which provide guaranteed payouts based on a formula that often considers factors such as salary history and years of service. However, it also incorporates the flexibility and individual account features of defined contribution plans, where employees have control over investment choices and account management.

This combination can help accommodate changing workforce demographics and preferences, making it a versatile option for both employers and employees. The focus on an employee's own contribution and investment choices helps align with modern retirement planning needs.