Partial Plan Termination
Definition of "Partial plan termination"
Scheme to recapture excess pension assets by splitting a qualified plan in two, and terminating one of them. In the mid-1980s, many pension plans became "overfunded" because their investments had performed so well. In order to recapture the "extra" money, some business firms split the pension plan into two plans, one for current employees and an overfunded one for retirees. The company buys annuities to pay the required benefits to retirees and reclaims the excess assets. The other plan is kept in place for current employees.
Popular Insurance Terms
Law by which many states attempt to regulate insurers who are unlicensed in those states. With a few notable exceptions, such as re insurers, insurance companies must be licensed in the ...
Person who has the responsibility for examining the risk to determine whether or not to insure it. ...
Clause, generally found in business interruption insurance, that establishes the same indemnification basis as the coinsurance clause. ...
Mortality table that includes data only on people who have recently purchased life insurance. Experience shows that such people have a lower mortality rate in the years immediately ...
Distribution of a deceased beneficiary's share of an estate among that beneficiary's children. Contrast with per capita. ...
Coverage that is purchased to provide protection for a loss that has already occurred. The severity of the loss, however, is uncertain. ...
Funds receivable or payable that have not been paid in a timely manner, commercial credit insurance protects an insured against declines in the value of receivables due to insolvency of a ...
Excess funds above the amount required to establish legal reserves for the policies in force. These excess funds are generated as the result of mortality savings, excess interest earned on ...
Act of practicing law or providing legal advice without a license. ...
Have a question or comment?
We're here to help.