What is a defined contribution scheme?  
A defined contribution scheme is a superannuation scheme in which the contribution is determined at the outset of the scheme. The contribution is usually expressed as a fixed percentage of the member's salary. In this case, the ultimate benefit to be received at retirement cannot be determined in advance as it will depend on the scheme's investment returns. If the scheme has a superior performance during the term of the membership, the member will receive a large sum of money at retirement, and vice versa.

A well known example is the Malaysian Employee Provident Fund (EPF).

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