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Funded pension plan |
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Funded pension planA pension plan in which all liabilities, including payments to be made to pensioners in the immediate future, are completely funded.Funded pension plan Similar MatchesPersonal pension planPersonal pension planA savings scheme introduced by the government in 1985 to enable the self employed, and employees working for companies not operating a group pension scheme, to build up a pension fund for retirement.PPPs are money purchase schemes and effectively replace what was known as a retirement annuity contract (RAC).Contributions to PPPs receive full tax relief up to maximum given percentages of net earnings for a range of ages.Life assurance may be purchased with up to 5% of net relevant earnings which will receive full tax relief. This percentage is included within the maximum contributions allowable.An employer may contribute to a person's PPP but this is not obligatory.Personal pensions can move with individuals when they change jobs.A PPP may be used to contract out of S2P. Pension Benefit Guaranty CorporationPension Benefit Guaranty CorporationIn the US, a federal corporation, set up in conjunction with the Employee Retirement Income Security Act (ERISA) of 1974, to guarantee basic benefits to participants in pension plans which are underfunded. State Earnings Related Pension SchemeState Earnings Related Pension SchemeA government scheme introduced in April 1978 which enables employees (but not the self-employed) to top up the basic pension they receive on retirement with additional pension payments based on their earnings.Employees make payments to SERPS by way of Class 1 National Insurance (NI) contributions. They can 'contract out' of SERPS and pay Class 1 contributions via a rebate which may be invested in an occupational pension or a personal pension plan.SERPS was replaced in April 2002 with the 'State Second Pension' which is designed to give more to the lower paid and middle earners, carers and the long-term disabled with broken work records. Whereas with SERPS, the more you earn, the higher your pension, S2P operate a flat rate which means that high earners will be better off opting for private pension schemes. Pension reversionPension reversionTermination of an overfunded defined benefit pension plan and ../../finance-glossary/ment of it with a life insurance company-sponsored fixed annuity plan. Executive pension planExecutive pension planA pension plan which is tailored for directors and senior executive staff. Further SuggestionsState Second Pensionbasic state pension flexible pension Pension Benefit Guaranty Corporation (PBGC) Pension mortgage Occupational Pensions Regulatory Authority Pensions Compensation Board National Insurance (NI) Basic Pension simplified employee pension plan pension forecast Keogh pension plan Unfunded pension plan guaranteed minimum pension Overfunded pension plan defined benefit pension plan Salary Reduction Simplified Employee Pension Plan (SARSEP) defined contribution pension plan Advance funded pension plan State Pension appropriate personal pension plan Pension Schemes Registry Pension sponsors Personal pension non contributory pension plan Simplified Employee Pension (SEP) plan |
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