Money Purchase Pension Plans
specify a percentage of compensation that must be contributed for each participant
annually. The amount of the pension is determined by the balance of the participant's
account at retirement.
Participant is a
person who has met the eligibility requirements of a plan and is, or may in the future be,
entitled to benefits.
Pension Plans, defined benefit or defined contribution, provide a definite formula to determine the amount of benefits or contributions for participants.
Permitted Disparity, see Integration.
Profit-Sharing Plan is a qualified plan that may permit the employer to have complete discretion as to the amount of each year's contribution, if any. Contributions must be allocated among the participants under a predetermined formula.
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