Turnover Rate
Definition of "Turnover rate"
Frequency with which employees resign, are fired, or retire from a company, usually computed as the percentage, of an organization's employees at the beginning of a calendar year. The turnover rate is one of the factors affecting the cost of a pension plan. Employees who leave a company before they have a vested interest in the plan represent a cost saving to plan administrators, because they will not receive benefits when they retire. For this reason, most actuaries make assumptions about the turnover rate of a particular company when calculating how much money must be contributed to a retirement plan to pay future benefits.
Popular Insurance Terms
Coverage that exceeds the normal insurance capacity of an insurer or reinsurer. ...
Highest price investor is willing to pay for a stock or mutual fund unit and lowest price a seller of a stock or mutual fund is willing to accept. ...
Provision of liability insurance that excludes coverage for dishonest acts of an insured. ...
Payment under a state-sponsored program for victims of crimes. ...
Statement regarding an insured's retention of low-severity risks because they are not catastrophic, and can be absorbed without having a dramatic effect on the financial structure of a ...
The absolute liability in insurance can be defined as actions, inactions, or negligence that leads to losses or damages to a third-party. The insurer is obligated to determine the ...
Compensation to an agent in the same absolute dollar amount, regardless of the type of insurance policy sold. Contrast with graded commission. ...
Canadian retirement plan much like U.S. individual retirement account (IRA). Here, an employee can contribute on a tax deductible basis C $3500 each year as a member of an employer pension ...
Standards used to determine claims payments in cases of overlapping property/liability insurance coverage. At one time, each type of insurance had its own rules to govern claims where more ...
Have a question or comment?
We're here to help.