pension plan

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Pension plan

A fund that is established for the payment of retirement benefits.


A retirement plan in which an employer makes a contribution into an account each month. The contributions are invested on behalf of an employee, who may begin to make withdrawals after retirement. Typically, pensions are tax-deferred, meaning that the employee does not pay taxes on the funds in the pension until he/she begins making withdrawals. Pensions may have defined contributions, defined benefits, or both. See also: 401(k), IRA.

pension plan

An arrangement for paying death, disability, or retirement benefits to employees. Payments into the plan are ordinarily a tax-deductible expense for the firm, but any contribution by employees may or may not be deductible on personal tax returns. Likewise, retirement benefits paid to employees will be wholly or partially taxable. Compare vested benefits. See also defined-benefit pension plan, defined-contribution pension plan.
References in periodicals archive ?
The private sector has been asking for solutions that help them deal with some of the challenges associated with an employer s ability to offer pension plans, said President of Treasury Board and Minister of Finance Doug Horner.
Brian Pasquali, an ATU executive board officer, called the new pension plan for administrative employees "inferior" and said the union generally doesn't support two-tiered plans.
Now the ripples of UK pensions regulation are beginning to cross the oceans and widely affect company pension plans around the globe.
The current pension plans are often "inadequate, misleading, and opaque," said the Government Accountability Office.
This is an area for pension plan advisers to exert influence on the plan sponsor and suggest periodic reviews of the plan document--especially as the company gets bigger and starts having more people and dollars in the plan--to ensure full understanding of the sponsor's fiduciary obligations.
Pension Plans, Retirement Plans, 401(k)s and IRAs: Many employers contribute to a pension plan for their employees, and many people contribute to their own pension plans (including IRAs).
Even as more companies offer defined-contribution pension plans, nearly a third of the Fortune 100 companies now offer employees so-called "hybrid" plans, an increase from 22 hybrids for the same group in 1998, according to a study by consulting firm Watson Wyatt Worldwide, Bethesda, Md.
Fixed income is always a part of a large pension plan, and one or two of our minority-owned managers are, in fact, fixed income managers, not equity managers.
Self-employed individuals or employees who are not members of pension plans can contribute the lesser of $7,500 or 20 per cent of earned income.
New chapters have been added on Employers' Accounting for Pensions (chapter 10), Investment of Pension Plan Assets (chapter 11) and Investment Objectives (chapter 12).
For example, the Pennsylvania Railroad pension plan, begun in 1903 for less than $300,000, cost $3.