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Fixed Benefits

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Fixed benefits
Payments to a beneficiary that are paid in fixed preset amounts and are not variable.

Fixed Benefits
In annuities and insurance, benefits that guarantee the annuitant a fixed return for the life of the annuity. Like any annuity, the annuitant buys into a policy, either with a lump sum or premiums, over a period of time. When the annuitant reaches a certain age or retirement (whichever is greater), he/she begins to receive the fixed benefits. Generally speaking, the insurance company issuing an annuity with fixed benefits invests the premiums in low-risk investment vehicles, such as bonds. This results in a smaller likelihood that the insurance company will be unable to make the payments, but also exposes the annuitant to inflation risk. See also: Variable benefits.


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In times of sickness and unemployment, fixed benefits were payable, and to the retired and widowed went a weekly pension.
With fixed benefits, everything is under the control of the payroll department, but with flex this department is no longer able to deal with all payroll queries.
This indicates that these companies can no longer afford to sustain their current defined benefit plans, where companies assume responsibility for paying out fixed benefits, unless some changes are effected.
 
 
 
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