Pension Plan
Definition of "Pension plan"
Retirement program to provide employees (and often, spouses) with a monthly income payment for the rest of their lives. To qualify, an employee must have met minimum age and service requirements. Benefit formulas can be either the defined contribution pension (money purchase plan) or the defined benefit plan. The employee retirement income security act of 1974 (ERISA) requires a pension plan to provide an income for the rest of a retired employee's life, and at least 50% of that amount to the surviving spouse of a retired employee for the rest of her life, unless the spouse this right in writing. Death and disability benefits are also provided by most pension plans. The TAX REFORM ACT OF 1986 has changed the VESTING requirements. Funds for these plans can be generated under numerous PENSION PLAN FUNDING INSTRUMENTS.
Popular Insurance Terms
Provision of a property insurance policy which covers conditions usually present in a particular location. For example, there is an inherent risk of explosion in a flour mill. ...
Payment of premiums before their due date. In pension plans, premium payments are allocated to the payment of future benefits prior to benefits becoming payable. ...
Covers losses resulting from the malfunction of boilers and machinery. Most property insurance policies exclude these losses, which is why a separate boiler and machinery policy or a ...
Program enacted in 1965 under Title XVIII of the Social Security Amendments of 1965 to provide medical benefits to those 65 and over. The program has two parts: Part A, Hospital Insurance, ...
a contract in life insurance that includes elements of whole life and term insurance. in pensions, a combined life insurance policy and a side (auxiliary) fund to enhance the amount of a ...
In property and casualty insurance, contract section containing such information as name, description, and location of insured property; name and address of the insured; period a policy is ...
Same as term Disability Benefit: income paid under a disability policy that is not covered under workers compensation benefits. It is usually expressed as a percentage of the insured's ...
Same as term Mortality Table: chart showing rate of death at each age in terms of number of deaths per thousand. ...
Requirement that the combination of medicare and the employer's plan can not be greater than the amount the employer's plan would pay without Medicare. ...
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