Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
contributory pension plan
A pension plan in which both the employer and the employee contribute. defined-contribution plan. See EMPLOYEE BENEFIT PLAN.
defined pension plan
A pension plan in' which the employer promises specific benefits to each employee. - Also termed fixed-benefit plan.
noncontributory pension plan
A pension plan contributed to only by the employer.
nonqualified pension plan
A deferredcompensation plan in which an executive increases retirement benefits by annual additional contributions to the company's basic plan.
pension plan
An employer's plan established to pay long-term retirement benefits to employees or their beneficiaries; a plan providing systematically for the payment of definitely determinable benefits to employees over a period of years, usu. for life, after retirement. 0 Retirement benefits are typically determined by such factors as years of the employee's service and compensation received. ERISA governs the administration of many pension plans. See EMPLOYEE RETIREMENT INCOME SECURITY ACT. Cf EMPLOYEE BENEFIT PLAN.
qualified pension plan
A pension plan that complies with federal law (ERISA) and thus allows the employee to receive tax benefits for contributions and tax-deferred investment growth.
qualified pension plan.
See PENSION PLAN.
simplified employee pension plan
An individual retirement account or annuity established for an employee and funded by employee contributions and by discretionary contributions from the employer. ( A simplified employee pension plan operates much like a 401(k) plan, in that the employee contributions can be made by deferred compensation and the employer can contribute. But the plan is attractive to small employers because it is much easier to administer than a 401(k) plan and gives the employer complete discretion on whether to make an annual contribution. IRC (26 USCA) ยง 408(k). -Abbr. SEP.