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Benefit Allocation Method |
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Benefit Allocation Method A way to finance a retirement plan in which an employee pays a certain amount or percentage of salary each year that the company uses to fund benefits equal to the contribution. These contributions continue each year until retirement (or until the employee leaves the company). In other words, the benefits are based on an average of an employee's salary over time. The benefit allocation method gives more highly compensated employees more benefits in retirement because those employees paid more into the system. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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