Deposit Administration Plan
Definition of "Deposit administration plan"
Unallocated funding instrument for pension plans under which premiums are placed on deposit, and are not currently allocated to the purchase of benefits for the employee. At retirement, an immediate retirement annuity is purchased for the employee. The amount of monthly income depends on the investment results of the funds left on deposit. Many insurance companies guarantee a minimum rate of return on funds left on deposit.
Popular Insurance Terms
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method of determining the worth of property to be insured, or of property that has been lost or damaged; method of setting insurance company reserves to pay future claims ...
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Act that requires the Department of Labor (DOL) to have a formal program to educate the public about the importance of saving for retirement. The DOL is also required to educate the public ...
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