Section 457 Deferred Compensation Plan
Definition of "Section 457 deferred compensation plan"
Plan in which a public employer (such as a university, state, county, or municipality) sponsors a retirement savings program, named for the section of the Internal Revenue Code that permits it. This plan allows the employer, upon agreement with the employee, to reduce the employee's salary by a specific amount and invest this amount, with pre-tax dollars, in various financial instruments. Upon termination of employment, the principal amount invested and any investment earnings are distributed to the terminating employee or the employee's estate. A deferred FIXED DOLLAR ANNUITY or VARIABLE DOLLAR ANNUITY are among the financial instruments that can be used to fund this plan.
Popular Insurance Terms
Coverage outside an insured's home for personal items usually carried or worn while traveling. Protection is for personal property (apparel and jewelry), not for real property or property ...
Fund established to pay specified losses, usually the low severity property losses. This type of account is an excellent device in conjunction with a self-insurance plan, in which the fund ...
Any of a number of types of surety bonds that the law requires of government contractors, licensed businesses, litigants, fiduciaries, government officials, and others whose performance of ...
Same as term Office Burglary and Robbery Insurance: coverage for the office of a business, or an individual in a general office building or other structure. Includes burglary of a safe; ...
Organization formed to encourage research in insurance and to foster an exchange of ideas and research methodology among the society members. ...
Sum it takes to replace an insured's damaged or destroyed property with one of like kind and quality, equivalent to the actual cash value, minus physical depreciation (fair wear and tear) ...
difference between the face value of a permanent life insurance policy and its accrued cash value. The pure cost of protection is based on this difference. For example, if the face value ...
Compensation payable to the owner of a ship detained for reasons beyond his or her control who incurs a loss of earnings because of the delay. Detainment can be caused by a delay in the ...
Same as term Contingent Business Income Coverage Form: coverage for loss in the net earnings of a business if a supplier business, subcontractor, key customer, or manufacturer doing ...
Have a question or comment?
We're here to help.