Definition of "Turnover rate"

Juliana Labarbera real estate agent

Written by

Juliana Labarberaelite badge icon

RE/MAX METRO REALTY

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.

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

Same as term Debit Insurance: life insurance on which a premium is collected on a weekly, bi-weekly, or monthly basis, usually at the home of a policyholder. The face value of the policy is ...

Eligible rollover distribution that is paid directly from an employee's employee benefit insurance plan to the employee's individual retirement account (IRA) or to another plan maintained ...

Membership organization, based in Chicago, Illinois, consisting principally of property and casualty insurance companies. Its objectives are to influence the public and the legislators on ...

Amount paid to an insurer. Determination of the actual cost (not the price paid) of a life insurance policy has been widely discussed for many years in life insurance and consumer circles. ...

Proof of death of the insured form filed with the insurance company establishing the rights of the beneficiary to the death benefit. ...

Mortality table whose statistics have been adjusted to show expected mortality experience. ...

Decision by a court of law. ...

Coverage for the contents of a renter's home or apartment and for liability. Tenant policies are similar to homeowners insurance, except that they do not cover the structure. They do, ...

Index that traces the construction of new single-family homes, townhouses, and multifamily apartment buildings. These statistics are published monthly by the United States Department of ...

Popular Insurance Questions