pension

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pension

(1) A regular payment plan intended to provide a person who retired from a job with a secure income for life.
(2) A monthly payment from a pension.
References in periodicals archive ?
415, which limits the amount that any plan participant can distribute from a defined benefit plan, must be considered when designing and administering these plans.
Defined benefit plans, as the name indicates, operate by setting a target benefit: the amount of a pension a given employee will receive in retirement.
Early overfunding of the defined benefit plan is a factor in the long-term health of the plan.
The maximum compensation limit used to calculate contributions or benefits for defined contribution plans and defined benefit plans is $255,000 (as indexed for 2013).
A defined benefit plan is typically best suited for the client who is able to contribute at least $50,000 annually toward the plan.
In the construction industry, 16 percent of workers are covered by a defined benefit plan, whereas in leisure and hospitality (including the accommodation and food service industries), only 2 percent are covered.
In an effort to reduce the costs of employee retirement plans, and offer more attractive plans to younger workers with few years of service, employers can convert their traditional defined benefit plans into cash balance plans.
Additionally, three-year vesting rules generally apply to the defined benefit plan, and any matching contributions to the defined contribution plan must be immediately vested.
A large percentage of the total cost for a defined benefit plan in this situation goes to fund these key employees' benefits.
With employers often challenged to develop a cost-effective, competitive benefits strategy, the combination of a defined benefit plan and defined contribution plan may provide the best solution.
The main benefit of a defined benefit plan for a small business owner is to reduce the owner's tax burden but there may be other significant benefits.

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