pension plan


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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 ?
The Pension Commission of Manitoba provided its recommendations with the goal of strengthening pension plans and the pension regulatory system.
As at the end of December 2016, the equity value of Desjardins Group Pension Plan's infrastructure portfolio was close to CDN 1.5bn.
State and local pension plans attract and retain well-qualified public employees.
A foreign pension plan may have higher contribution limits than those available under U.S.
In 2011, Canada Post tried to force CUPW members into accepting a defined-contribution pension plan for new hires.
Large companies adopting the defined benefit pension plans will be required to form an investment advisory committee and produce a report on their investment principles.
Pension plan assets increased by an estimated 9% in 2013, from USD 1.288bn at the end of 2012 to an estimated USD 1.409bn at the end of last year.
According to the 2013 edition of its research report, "The State of State Pension Plans," Wisconsin's funded ratio is 99.9%, a 0.1% increase from last year, and the liability per capita is $18, which fell $3 from 2012.
Jon Waite, director of institutional advice at SEI, says the erosion of defined- benefit pension plans may not be over, but plan sponsors may be rethinking their approach to the situation.
The new deadline could be further extended with the consent of the panel, the British company said, adding that talks with Ontario Teachersa[euro](tm) Pension Plan are ongoing, with the potential buyer currently reviewing confidential information made available to it.
The automaker is taking this step as it attempts to bring the pension plans closer to fully funding their obligations.
The new pension plan for administrative employees "has no impact on existing employees," Adams said.