Which of the following is true about employer contributions in defined contribution plans?

In defined contribution plans, employer contributions are typically required regardless of the company's profits. This means that employers are obligated to contribute a specified amount or percentage to the employee's retirement plan, ensuring that even in years when profits may be low, employees still receive their entitled contributions.

This aspect of employer contributions is crucial for providing employees with a reliable means of building retirement savings. It reflects the employer's commitment to supporting their workforce's financial futures and helps to incentivize employee retention and satisfaction.

Other statements do not align with the standard operation of defined contribution plans. For example, while contributions can vary, they are generally governed by plan provisions that may dictate minimum contributions. Likewise, the timing of contributions is not limited to just the end of the fiscal year; they can be made more frequently. Lastly, while employee performance might influence individual contributions in some contexts, employer contributions are standardized across the board and not solely based on individual performance.