Voluntary Plan Termination
Definition of "Voluntary plan termination"
Ending a pension plan at the election of an employer or sponsor. The employer has the unilateral right to change or terminate a pension plan at any time. However, the termination must meet requirements set out by the employee retirement income security act of 1974 (erisa). Assets must be distributed to participants according to federal guidelines.
Popular Insurance Terms
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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. ...
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