While 401Ks fill the dictionary meaning of 'defined contribution', that's not the common usage in regard to Corporate Pensions as defined under ERISA.
A defined contribution pension simple posits that you have credits added to an account each year at some rate, usually a % of your salary/wage. And there's a yearly interest rate that's adjusted each year. At retirement, at the companies decision, you can get some or none of that money rolled into an IRA. Usually, most to all goes into an annuity chosen by the company - at a rate that's better for the company than you.
The amount in your 'account' is not really in a separate account, but is the same old pension-fund account used previously. If the company goes bankrupt, the feds step in and cover the pension debt at a reduced rate.
This scheme is just a way to avoid having pensions somewhat inflation adjusted by being based on the last few years salary/wage, as are usually the defined benefit plans. The laws around conversions from defined-benefit to this style of defined-contribution are hugely in the companies behavior. For folks halfway through their career (15-20 years), this cuts the total cost to the company for pension benefits in half.
401Ks are great, and give about 200+% better return than either the defined-benefit or defined-contribution pension setups as the extra market growth above the 5-7% imputed rate for corporate plans accrues to the employee, not the company.
Any pension plan except 401Ks should be illegal.
In today's time of wide spread corporate corruption..I wonder how many folks would pass a pension by (even with an employer match and control) and start and IRA on their own.
Myself, I would hesitate to participate in a plan that is controlled by a company. You are correct..anything outside of a 401K should be illegal.
Good clarification - thanks.
Recently I haven't been noticing much "market growth above the 5-7% imputed rate", but that may be just my own cynicism.