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Pension plan |
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Pension planAn investment plan which can provide a lump sum on and an income after retirement. A pension plan is sometimes used as a way of providing a lump sum to repay the capital of an interest only mortgage.Pension planSee 'personal pension plan'.Pension planA fund that is established for the payment of retirement benefits.Pension plan Similar MatchesNational Insurance Pension (State Pension)National Insurance Pension (State Pension)Regular income from the state paid to retired people who have made contributions during their life. In the UK, the retirement age for men is 65 and for women is 60.To qualify individuals must have made full National Insurance (NI) contributions. Men must have worked for 44 years and women for 39 years, or have received a special waiver such as invalid care allowance.In April 1978 the government introduced another pensions scheme (the State Earnings Related Pensions Scheme or SERPS) to provide a pension related to the earnings of employed people only. SERPS was replaced by the Second State Pension or S2P in April 2002.Employees make payments to S2P and the NI Basic Pension by way of Class 1 National Insurance (NI) contributions. (Employers also pay Class 1 contributions on all the employee's earnings). Employees may elect to contract out of S2P and pay Class 1 contributions via a rebate which may be invested in an occupational pension or a personal pension plan.There are two main pensions: the NI Basic Pension and S2P. There is also an additional benefit, the Graduated Pension or Graduated Retirement Benefit. This was a state scheme which existed between April 1961 and April 1975 for people earning over £9 per week. People who were employees during any part of this period and who paid Graduated NI Contributions will receive a Graduated Retirement Benefit. Women over 60 and men over 65 can if they wish continue in employment even when they are receiving the NI Pension. Basic state pensionBasic state pensionSee 'state pension'. Salary Reduction Simplified Employee Pension Plan (SARSEP)Salary Reduction Simplified Employee Pension Plan (SARSEP)A low-cost, no-frills version of a 401(k) employee savings plan available to companies with 25 or fewer employees. It allows employees to make pretax contributions to their IRAs through salary reduction each year. The Small Business Job Protection Act of 1996 ../../finance-glossary/d SARSEPs with SIMPLE (Savings Incentive Match Plan for Employees) plans. Existing SARSEPs were allowed to add new participants, but new plans could not be formed after December 31, 1996. Pension sponsorsPension sponsorsOrganizations that have established a pension plan. 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. Further Suggestionsoccupational pension schemesimplified employee pension plan Pensions Compensation Board defined benefit pension plan Simplified Employee Pension (SEP) plan Occupational Pensions Regulatory Authority Advance funded pension plan Funded pension plan company pension scheme unfunded pension plan State Second Pension Pension Schemes Registry Keogh pension plan flexible pension Overfunded pension plan deferred state pension equivalent pension benefit pension mortgage Pension reversion pension forecast Inland Revenue Pension Schemes Office National Insurance (NI) Basic Pension personal pension scheme guaranteed minimum pension Personal pension |
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