Individual Policy Pension Trust

Definition of "Individual policy pension trust"

Sue Medlin Smith real estate agent

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Southern Coastal Realty

Type of pension plan in which the employer (if noncontributory plan) or the employer and employee (if contributory plan) make level annual premium payments to fund the future retirement benefits, through an individual deferred annuity, of the employee. Also funded in this manner is a separate life insurance policy on each employee. (This policy is usually held in the trust.)

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