Target Benefit Pl
Definition of "Target benefit pl"
Type of pension in which benefits may vary depending on the investment performance of the pension plan assets. Contributions are made to fund a target benefit, such as 35% of compensation, using acceptable mortality and interest rate assumptions. Funds are invested wholly or partially in such vehicles as variable annuities or mutual funds, and benefits may exceed or fall below target levels depending on investment performance. Target plans are subject to the same annual contribution limits for individual participants as a money purchase plan.
Popular Insurance Terms
Annuity that provides income payments for a number of years provided the annuitant is alive to receive them. All income payments cease upon the death of the annuitant. ...
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Largest property and casualty insurance company trade association in the world (international membership)whose objectives include the service of its membership through positive legislation ...
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