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Salary |
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SalaryRegular wages and benefits an employee receives from an employer.Salary Similar MatchesSalary reduction planSalary reduction planA tax deferred retirement plan which provides for an employee to have a certain amount of gross salary withheld and invested in a choice of stocks and bonds. Contributions and fund growth are free of tax until withdrawal. 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. Salary reduction planSalary reduction planA plan allowing employees to contribute pre-tax income to a tax-deferred retirement plan. Final salaryFinal salaryThe basis of determining a person's pension entitlement in a final salary scheme and which normally refers to an occupational pension. Final salary is defined as either:the total emoluments in a year, in any of the five years immediately preceding retirement, orthe average of total emoluments for periods of three consecutive years or more ending within ten years of retirement.Directors who own 20% or more of a company's share capital must define their final salary according to 2. above.For people joining a scheme on or after 1st June 1989 (or 14th March 1989 if the scheme was new at that time) an earnings cap will apply which limits the final salary to be used for calculating benefits. Salary freezeSalary freezeA temporary halt to increases in salary due to financial difficulties experienced by a company. Further Suggestionsfinal salary scheme (defined benefit scheme) |
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