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.

Non-Qualified Plans are compensation arrangements that do not meet the Internal Revenue Code qualification requirements. Usually, either the employer will not get a current deduction for contributions, or the beneficiaries will currently be taxed upon those contributions.

Normal Retirement Age is the plan's regular age for full vesting and beginning distributions. However, distribution and vesting may occur under other circumstances. Actual termination of employment at this age is not required.

Participant is a person who has met the eligibility requirements of a plan and is, or may in the future be, entitled to benefits.

PBGC (Pension Benefit Guarantee Corporation) is a governmental agency that insures certain defined benefit plan pensions, requiring a payment of an annual premium.

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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