noncontributory pension plan

Noncontributory pension plan

A pension plan that is fully paid for by the employer, requiring no employee contributions.
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Noncontributory Pension Plan

A pension where the pensioner (or employee) makes no contributions. Instead, the employer makes all contributions on the pensioner's behalf. This contrasts with most pension plans, where both employee and employer make contributions. See also: Matching Contribution, Contributory Pension Plan.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

noncontributory pension plan

A pension plan in which the participating employees are not required to support the plan with contributions. Compare contributory pension plan.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
On the other hand, if the surviving spouse takes an annuity payout of the tax-free death benefits, less of each payment will be subject to income tax than post-retirement survivor benefits received under a noncontributory pension plan (i.e., less death benefits will be required to provide the surviving spouse a given after-tax income).
In addition, the company offers noncontributory pension plans and short-term disability and life insurance policies.
Latimer, "Most pension plans operating in 1929 seem to have been framed with the idea of relating the benefit to the employee's standard of living at the time of retirement."(19) Indeed, half of the noncontributory pension plans operating in that year specified average pay during the last 10 years of service as the basis for the benefit calculation.