An annuity is a financial contract in which the purchaser makes an upfront payment to an insurance company in exchange for regular, structured payments either for a specific period or for the remainder of the purchaser's life.
A contributory pension plan is a retirement savings plan in which both the employee and employer contribute funds. These plans are designed to provide financial security to employees after retirement by pooling resources from both parties.
An occupational pension scheme where the retirement benefits are calculated based on the employee's final salary prior to retirement. It is a type of defined-benefit pension scheme.
The Pension Benefit Guaranty Corporation (PBGC) is a federal corporation established under the Employee Retirement Income Security Act (ERISA) to guarantee basic pension benefits in covered plans. It administers terminated plans and can place liens on corporate assets for certain unfunded pension liabilities.
Portability in the context of employee benefits, such as pension and insurance coverage, refers to the characteristic that allows employees to retain their benefits even when they leave their current job to take up a new one with a different employer.
A Self-Employment Retirement Plan, also referred to as a Keogh Plan, is a tax-deferred pension account specifically designed for self-employed individuals and unincorporated businesses. It enables them to set aside a portion of their income for retirement.
