Credit, Pension Plan
Value of benefit or contribution allocated to an employee under a pension plan; method of determining benefits due a retired employee. Each private pension plan establishes rules for awarding credits to employees, taking into account age, amount of time with the employer, number of days worked per year, breaks in service, maximum salary, and position in the company. For an employee who joined a firm before the plan was put in place, the company computes past service credit, crediting work done prior to establishment of the plan. Ultimately, credits determine the level of pension income the employee receives upon retiring.
Popular Insurance Terms
Person who is expressly or by implication asked to visit property in the possession, care, or control of another person. The inviter has the obligation to render his or her property safe ...
Costs incurred by an insurance company other than agent commissions and taxes; that is, mainly the administrative expense of running a company. ...
Sum returned to a policyowner by an insurance company under a participating policy. Dividends are not deemed as taxable distributions, as the Internal Revenue Service interprets them as a ...
Provision in ocean marine cargo policies to limit an insurance company's liability for partial losses; the company has liability only for losses that exceed a stipulated percentage of the ...
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Statement showing the amount of money owed the agent by the insurance company, according to the contract he or she has with the insurance company. ...
Process of calculating a premium so that it is adequate-sufficient to pay losses according to expected frequency and severity, thereby safeguarding against the insurance company becoming ...
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