Credit, Pension Plan
Definition of "Credit, pension plan"
Value of benefit or contribution allocated to an employee under a pension plan; method of determining benefits due a retired employee. Each private pension plan establishes rules for awarding credits to employees, taking into account age, amount of time with the employer, number of days worked per year, breaks in service, maximum salary, and position in the company. For an employee who joined a firm before the plan was put in place, the company computes past service credit, crediting work done prior to establishment of the plan. Ultimately, credits determine the level of pension income the employee receives upon retiring.
Popular Insurance Terms
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Stipulations of the rights and obligations of an insured and an insurer under a policy. ...
Statement showing the amount of money owed the agent by the insurance company, according to the contract he or she has with the insurance company. ...
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