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
Government agency, under the McCarran-Ferguson act (public law 15), that has no authority over insurance matters to the extent the states regulate insurance to the satisfaction of Congress. ...
Factor applied in retrospective rating in order to increase the basic premium to cover state premium taxes for liability and workers compensation insurance. For example, if a state premium ...
Type of term life insurance policy that has a face amount that increases to a predetermined sum and then decreases to zero at the termination point of the policy, while at the same time ...
Life insurance rate determined by the valuation of company policy reserves. State regulators set strict standards for policy reserves to make certain that life insurers will have enough ...
New pension-accounting rule (Employers Accounting for Post retirement Benefits Other Than Pensions) which mandates that employers that provide post retirement benefits to include life ...
Excess coverage over the first layer of medical insurance to provide for catastrophic medical payments. The first layer may be either group or individual medical insurance, or an individual ...
Market in which buyers dominate trading and force financial asset prices up. ...
Rights of employees who leave an employer with a qualified plan to withdraw their accumulated benefits. With a contributory plan, employees have immediate rights to their own contributions, ...
Single payment or periodic payments that are made to purchase an annuity. ...
Have a question or comment?
We're here to help.