An outline of an employee benefit plan where employees are entitled to a portion of the profits of their company, receiving bonuses when the company is profitable.
In the context of pension or profit-sharing plans, nonforfeitable benefits are those that are guaranteed and not conditioned upon further length of service or performance requirements.
An unfunded pension or profit-sharing plan refers to a financial arrangement that does not meet the minimum funding standards. This could pose potential risks to the beneficiaries of such plans due to the lack of adequate financial backing.
