"but don't confuse a DC plan with a 401(k) plan... "
I'm now totally confused. Most companies consider their 401K plans to be DC plans - in the sense that they match a certain portion of the employee's contribution and the employee can only put in up tp a certain amount. I have never heard of a DC plan being one as you describe. Plus, your company must be one of maybe a handful that are so generous. Must be a non or not for profit.
Here is the wiki definition of a DC plan:
In
economics, a
defined contribution plan is a type of
retirement plan in which the amount of the employer's annual contribution is specified. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts (through employer contributions and, if applicable, employee contributions) plus any investment earnings on the money in the account. Only employer contributions to the account are guaranteed, not the future benefits. In defined contribution plans, future benefits fluctuate on the basis of investment earnings. The most common type of defined contribution plan is a savings and thrift plan. Under this type of plan, the employee contributes a predetermined portion of his or her earnings (usually pretax) to an individual account, all or part of which is matched by the employer.
[2] In the
United States,
26 U.S.C. § 414(i) specifies a defined contribution plan as a
plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant’s account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant’s account.
Examples of defined contribution plans in the USA include
Individual Retirement Accounts (IRAs) and
401(k) plans. In such plans, the employee is responsible, to one degree or another, for selecting the types of
investments toward which the funds in the retirement plan are allocated.
Based on the above, it would seem to me that your plan may be a DC plan, but so are all 401Ks, 403Bs, IRAs, etc. the ONLY things that seem to be special about yours are the high contribution by your company (and none from employees) and the TOTAL inability of employees to determine the fate of their money. Plus, the last sentence states clearly that the employee is responsible, to one degree or another, in the selection of investments. Your plan misses that factor completely.
I don't call that a great deal. An OK deal maybe, but certainly not a great deal.