pension plan

A plan established and maintained by an employer primarily to provide systematically for the payment of definitely determinable benefits to his employees, or their beneficiaries, over a period of years (usually for life) after retirement. Retirement benefits are measured by, and based on, such factors as years of service and compensation received by the employees. The Employee Retirement Income Security Act (ERISA) governs plan qualification, operation, and administration, and specifically such matters as participation requirements, funding, vesting and filing and reporting with the Internal Revenue Service and Labor Department.
Pension benefits under qualified plans are guaranteed by the Pension Benefit Guaranty Corporation. A stated allowance out of the public treasury granted by government to an individual, or to his representatives, for his valuable services to the country, or in compensation for loss or damage sustained by him in the public service. Frisbie v. U. S., 157 U.S. 160, 15 S.Ct. 586, 39 L.Ed. 657.
- money-purchase plan
- pension trust.
@ contributory pension plan
A plan funded with both employer and employee contributions.
@ defined-contribution plan
Pension plan that provides benefits as determined by the accumulated contributions and the return on the fund's investment performance; the contributions are specified, but the benefits are not.
@ defined pension plan
A pension plan where the employer promises specific benefits to each employee. The employer's cash contributions and pension expense are adjusted in relation to investment performance of the pension fund. Sometimes called a "fixed-benefit" pension plan.
@
@ noncontributory plan
A pension plan where only the employer makes payments to fund the plan
Compare contributory pension plan.
@ qualified pension plan
An employer-sponsored plan that meets the requirements of I.R.C. No. 401. If these requirements are met, none of the employer's contributions to the plan are taxed to the employee until distributed to him or her [No. 402]. The employer will be allowed a deduction in the year the contributions are made [No. 404]
@ pension trust
Type of funded pension plan in which the employer transfers to trustees an amount sufficient to cover cost of pensions to employees who are the beneficiaries of the trust
@

Black's law dictionary. . 1990.

Look at other dictionaries:

  • pension plan — UK / US or pension scheme UK / US noun [countable] Word forms pension plan : singular pension plan plural pension plans a system designed to provide people with a pension after they have made regular payments over a long period of time …   English dictionary

  • pension plan — pension plans N COUNT A pension plan is an arrangement to receive a pension from an organization such as an insurance company or a former employer in return for making regular payments to them over a number of years. [BUSINESS] I would have been… …   English dictionary

  • pension plan — n. A plan established by an employer to provide retirement benefits to employees. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. pension plan …   Law dictionary

  • pension plan — also pension scheme BrE n an arrangement in which you pay money regularly into a pension fund while you are working, so that you will receive a ↑pension …   Dictionary of contemporary English

  • pension plan — pension ,plan noun count the financial plan of a company or other organization for paying pensions to people …   Usage of the words and phrases in modern English

  • Pension plan — A fund that is established for the payment of retirement benefits. The New York Times Financial Glossary * * * pension plan ˈpension ˌplan also reˈtirement ˌplan noun [countable] FINANCE HUMAN RESOURCES …   Financial and business terms

  • pension plan — A fund that is established for the payment of retirement benefits. Bloomberg Financial Dictionary * * * pension plan ˈpension ˌplan also reˈtirement ˌplan noun [countable] FINANCE HUMAN RESOURCES …   Financial and business terms

  • pension plan — noun a plan for setting aside money to be spent after retirement • Syn: ↑pension account, ↑retirement plan, ↑retirement savings plan, ↑retirement savings account, ↑retirement account, ↑retirement program • Hypernyms: ↑ …   Useful english dictionary

  • Pension Plan — A type of retirement plan, usually tax exempt, wherein an employer makes contributions toward a pool of funds set aside for an employee s future benefit. The pool of funds is then invested on the employee s behalf, allowing the employee to… …   Investment dictionary

  • pension plan — /ˈpɛnʃən plæn/ (say penshuhn plan) noun a financial plan, especially a superannuation plan, designed to provide a pension to the holder. Also, pension scheme …   Australian English dictionary

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