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CompoundingâA method of crediting interest by. which interest accumulates on the principal amount. invested, as well as on any accumulated interest. Defined-Benefit PlanâA retirement plan, such as TRSâ. QPP, that guarantees a retirement allowance to. participants and is typically based on the participantsâ. service and salary before retirement. Defined-Contribution PlanâA retirement plan, such. as TRSâ Tax-Deferred Annuity (TDA) Program, in which. the benefit to participants is based on the amount that is.