Partial Plan Termination
Definition of "Partial plan termination"
Scheme to recapture excess pension assets by splitting a qualified plan in two, and terminating one of them. In the mid-1980s, many pension plans became "overfunded" because their investments had performed so well. In order to recapture the "extra" money, some business firms split the pension plan into two plans, one for current employees and an overfunded one for retirees. The company buys annuities to pay the required benefits to retirees and reclaims the excess assets. The other plan is kept in place for current employees.
Popular Insurance Terms
In property insurance policy, clause that stipulates that if legislative acts or acts of the insurance commissioner's office expand the coverage of an insurance policy or endorsement forms ...
For loss of an obligee in the event that the principal fails to perform according to standards agreed upon between the obligee and the principal. ...
Common exclusion in life and accidental death insurance (double indemnity) policies, indicating that coverage does not apply unless an insured is a passenger on a regularly scheduled ...
(stop loss) amount over which a health insurance plan pays 100% of the costs in a percentage participation plan. Here, an insured shares costs with the insurer according to some ...
Same as term Accounts Receivable Insurance: coverage when business records are destroyed by an insured peril and the business cannot collect money owed. The policy covers these ...
Bonds sold at a discount from their face value; accumulated interest paid at maturity, as in the case of zero coupon bonds. Interest rate minimum is guaranteed with the prevailing interest ...
Market in which sellers dominate trading and force financial asset prices down. ...
Coverage in the event an insured's automobile is damaged, destroyed, or lost through fire, theft, vandalism, malicious mischief, collision, or windstorm. There are two kinds of property ...
Principle of equity in property, casualty, and health insurance. When two or more policies apply to the loss, each policy pays its part of the loss, unless its terms provide otherwise. For ...
Have a question or comment?
We're here to help.