Section 457 Deferred Compensation Plan
Definition of "Section 457 deferred compensation plan"
Plan in which a public employer (such as a university, state, county, or municipality) sponsors a retirement savings program, named for the section of the Internal Revenue Code that permits it. This plan allows the employer, upon agreement with the employee, to reduce the employee's salary by a specific amount and invest this amount, with pre-tax dollars, in various financial instruments. Upon termination of employment, the principal amount invested and any investment earnings are distributed to the terminating employee or the employee's estate. A deferred FIXED DOLLAR ANNUITY or VARIABLE DOLLAR ANNUITY are among the financial instruments that can be used to fund this plan.
Popular Insurance Terms
Exchange of a new policy for one already in force. ...
Death payment that increases with the age of an insured. Graded benefits may increase gradually and then level off, or may increase sharply before becoming level. This type of coverage is ...
Coverage for the insured in the event that the insured's negligent acts and/or omissions result in losses in connection with the use, ownership, or maintenance of aircraft. Liability ...
Coverage on an all risks basis at any location for stamp and coin collections, excluding wear and tear, war, nuclear disaster, and mysterious disappearance. Usually each item is ...
Financial guarantee policy that insures against loss of principal invested in a mutual fund. ...
Endorsements to life insurance policies that provide additional benefits or limit an insurance company's liability for payment of benefits under certain conditions. These include: Waiver of ...
Insurance company that has no outstanding shares of stock, such as a mutual insurance company. ...
Coverage provided on an all risks basis for an exhibitor whose product, while being displayed at a public exhibition, is damaged or destroyed by a peril that is not specifically excluded in ...
Form of excess of loss reinsurance under which each year's reinsurance premium is determined by the amount of the cedent's excess losses for a given period of time, usually three or five ...
Have a question or comment?
We're here to help.