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noncontributory plan

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noncontributory plan,
n a method of payment for group insurance coverage in which the entire premium is paid by the employer or the union. Also referred to as
noncontributory program.


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While this makes sense in respect of a contributory deferred compensation arrangement where amounts set aside for the benefit of an employee are also beyond reach of the employer's creditors, it does net follow that a contributory plan must be treated the same as a noncontributory plan.
12 These noncontributory plans covered nearly 96 percent of employees working for companies that reported having a pension plan.
As shown in table 4, noncontributory plans were less likely to apply deductibles than contributory plans.
 
 
 
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