Definition of "Pension trust"

Susan Welsh real estate agent

Written by

Susan Welshelite badge icon

Long & Foster Real Estate, Inc.

Provision that funds a tax-qualified plan. Trust funds are the oldest, and still the most common, method of funding pensions. All contributions made by employer and employees are deposited into a trust fund, with a trustee responsible for investing the money, administering the plan, and paying benefits.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Model state law of the NAIC that requires that the insurance policy contain language that meets a readability test (usually, the Flesch readability test that uses a formula approach to ...

Chart showing rate of death at each age in terms of number of deaths per thousand. ...

Expenses added to the beginning of a premium payment period. For example, an annuity with a 10% front load would include $10 of expenses for each $100 premium paid. ...

Type of guaranteed insurance contract in which the term is fixed, the rate is fixed, and the contract owner does not participate in the insurance company's earnings. ...

Historical mortality table that replaced the annuity table, 1949, used for the calculation of annuity rates with more-current mortality experience at that time. This table was subsequently ...

Liability insurance coverage for claims arising from acts that occurred before the beginning of the policy period. Policies written on a claims made basis, such as malpractice liability ...

Division of a sum of money between a deferred annuity and an immediate life annuity certain. ...

Exclusion in property insurance eliminating coverage for damage or destruction of property due to insects. ...

Capacity of parties to an insurance contract to understand the meanings of their action in order for the contract to be valid. ...

Popular Insurance Questions