pension plan


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Pension plan

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

Pension

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 ?
New chapters have been added on Employers' Accounting for Pensions (chapter 10), Investment of Pension Plan Assets (chapter 11) and Investment Objectives (chapter 12).
In the 19th century, the railroad industry initiated the nation's first widespread private pension plans, offering workers some semblance of security in their old age.
Do the trust and pension plan need to take any action?
Nebraska is the only state that has offered a defined-contribution plan over the long term - at least 30 years - and studies have found that employees generally did worse under such a plan than traditional pension plans in similar states.
Employers like them because of the lack of volatility in cost, the perceived low cost relative to defined benefit pension plans and the lack of complex administration.
In this Milke contends that Canada's Pension Plan along with the current mandatory retirement age of 65 years needs overhauling to make CPP fairer to younger workers, to reduce the tax burden on individuals and employers and to make the retirement age more in line with an increased life span of four years.
In a major victory for Main Street, sole proprietors, partners and S corporation shareholders now are permitted to take loans from their company's pension plan.
It manages $700 million of the California State Teachers Pension Plan assets.
There is nothing in the legislative history to suggest that Congress intended section 404A and section 404 to be the sole means for securing a deduction or E&P adjustment for foreign pension plan contributions.
Ontario Teachers' Pension Plan acquired from Orient Overseas a diversified portfolio of quality port terminals on both the East and West coasts.
Accordingly, it held that the ERISA-qualified pension plan was excluded from the debtor's bankruptcy estate under that section.
The funding of large company pension plans improved last year, despite significant increases in pension plan liabilities, finds a recent analysis by Watson Wyatt Worldwide.