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SalaryRegular wages and benefits an employee receives from an employer.Salary Similar MatchesFinal salary scheme (defined benefit scheme)Final salary scheme (defined benefit scheme)A pension scheme in which an employee's pension is based on number of years of service and final salary with each employer. In this type of scheme employees are typically provided with 1/60 of final salary for each year of service up to a maximum of 40/60 that is, two thirds of final salary. At retirement a tax free lump sum may be taken at the expense of a reduced pension. Salary freezeSalary freezeA temporary halt to increases in salary due to financial difficulties experienced by a company. 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 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 planSalary reduction planA plan allowing employees to contribute pre-tax income to a tax-deferred retirement plan. Further Suggestionsfinal salary |
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