Target Benefit Pl
Definition of "Target benefit pl"
Type of pension in which benefits may vary depending on the investment performance of the pension plan assets. Contributions are made to fund a target benefit, such as 35% of compensation, using acceptable mortality and interest rate assumptions. Funds are invested wholly or partially in such vehicles as variable annuities or mutual funds, and benefits may exceed or fall below target levels depending on investment performance. Target plans are subject to the same annual contribution limits for individual participants as a money purchase plan.
Popular Insurance Terms
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Feature of pension plans whereby an employee whose service has been interrupted can have that period credited toward retirement. ...
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Decision by a court of law. ...
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Period of time of insurance coverage. If a loss occurs during this time, insurance benefits are paid. If a loss occurs after this time period has expired, no insurance benefits are paid. ...
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