Current Disbursement
Definition of "Current disbursement"
Payment of premiums and benefits as they come due. In pension plans, known as the "pay as you go basis." The plan depends on new employees coming into the work force so that their contributions can help pay for the benefits of the retiring employees. If the company is not experiencing growth and is in fact part of a matured or even a dying industry, there may not be enough on hand to pay benefits of retiring employees.
Popular Insurance Terms
Qualified retirement plan under the internal revenue code Section 457 for employees of the states and political subdivisions within the states. ...
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Amount subtracted from an annuity or from mutual fund proceeds payable to an annuity owner or mutual fund owner to reflect expense fees described in the annuity contract or mutual fund ...
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