Forty-five Year Rule
One of three ways vesting must occur in a pension plan under the employee retirement income security act of 1974 (ERISA). An employee is entitled to 50% of his or her benefits after 10 years of employment, or when the total years of service (at least 5) and the employee's age equal 45, whichever is the earlier achieved. After that, the employee is credited with 10% for each year of service for the next 5 years, whereupon 100% vesting is achieved. Under the TAX REFORM ACT OF 1986, this vesting rule will no longer be in effect for plan years after December 31,1988.
Popular Insurance Terms
One of three ways vesting must occur in a pension plan under the employee retirement income security act of 1974 (ERISA). An employee is entitled to 50% of his or her benefits after 10 ...
Statement submitted to the insurance company to accompany a request for the reinstatement of an insurance policy that has lapsed. This statement certifies that the insured's health has not ...
Chart showing rate of death at each age in terms of number of deaths per thousand. ...
Coverage by at least two insurance policies providing the same coverage for the same risk. ...
Section in a life insurance policy stating that after the policy is in force two years, the company cannot void it because of misrepresentation or concealment by the insured in obtaining ...
Specific time at which the insurance policy coverage begins and ends. ...
Chart published in 1868 by Sheppard Homans, an actuary with the Mutual Life Insurance Company of New York, based on insured lives from 1843 to 1858. Historically, it was widely used for ...
Loss occurring by accident or chance, not by anyone's intention. Insurance policies provide coverage against losses that occur only on a chance basis, where the insured cannot control the ...
Same as term Participating Insurance: policy that pays a dividend to its owner. ...
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