Plan participant

Plan Participant

One who contributes to and/or is eligible to receive benefits from an employer-sponsored retirement plan or pension. This includes person(s) contributing to a 401(k), as well as retired persons who are making withdrawals from their accounts. Plan participants' rights with regard to their plans are regulated by the Employee Retirement Income Security Act (ERISA). Covered employees have the right to see the plan's annual tax forms on demand, and the right to sue the plan. Generally, planned participants need to participate in the plan for a certain number of years before becoming eligible for the maximum allowable benefits.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Plan participant.

If you're enrolled in an employee retirement plan, such as a 401(k) or pension plan, you're a plan participant with certain rights and protections guaranteed by federal rules.

The plan in which you participate may be subject to administration and investment rules set by the Employee Retirement Income Security Act (ERISA).

As a participant, you have the right to certain information about your plan, such as a summary plan description, which outlines how it works. You also have the right to see copies of the tax reporting form that your plan must file with the IRS each year (Form 5500), as well as statements showing your estimated retirement benefits. If you have problems with your plan, you also have the right to bring claims against it.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
LHP: How does the default option work if, say, the plan participant is invested 70 percent in equities and 30 percent in fixed income, and wants to do a rollover to another employer-sponsored plan or an IRA?
The Investment Company Institute (ICI) unveils this finding in an August 2014 report, "Defined Contribution Plan Participants' Activities, First Quarter 2014." The 2014 report updates results from ICI's survey of a cross-section of record-keeping firms representing a range of DC plans and covering about 24 million employer-based DC retirement plan participant accounts as of March 2014.
* The provider designs the technology-logic, screens and communications-for plan participant usage on the 401(k) platform;
(Companies currently pay the PBGC $35 per plan participant, which will rise to $49 per participation by 2014.) On the other hand, the PBGC's exposure to pension risk is lessened.
The cost of each share varies with the plan participant's age and current interest rates and is based on a retirement age of 65.
"Clients are more interested in identifying opportunities to change plan participant behavior than in shifting costs," executive vice president for PBM marketing Jack Bruner says.
The Act requires that each plan participant shall enter into a levelized payment plan with the gas and electric service provider, and the utility provider will review and adjust the participant's usage and payments regularly, but not more often than quarterly.
The plan participant must have had the opportunity to choose his or her investments, but did not do so.
The investment advisor or the plan participant must determine the level of equity, fixed income, and cash or cash equivalents among the investments held at any given time.
A haircut provision is defined as a percentage loss the plan participant would suffer due to an early distribution from the plan.
During that hearing, the Senate HELP Committee voted for an increase in flat-rate premiums from $19 to $46.75 per plan participant beginning in 2006, which is indexed for wage increases.
"A lot of the time that is added to the rollover process results in the plan participant or the investor not knowing how to fill out the documents correctly," says Bowser.