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Unformatted text preview: Benefits:
c. ACCRUED: based on years of service for all employees
PV of Benefits fro past service regardless of vested
VESTED: based on employees that reach vested status. Benefits
to be paid if all employees who are vested retired when expected
to do so.
to All Rights Reserved Dr David P Echevarria 6 PENSION FUNDS
C. Types of Plans:
1. Defined Contribution Plans:
3. Benefit levels determined by the investment experience of the fund
Both employer and employee contribute to plan (typ. pre-tax dollars) Defined Benefit Plans: A contractual benefit (an annuity) payouts
based on actuarial tables and length of service. Under ERISA, these
are corporate liabilities enforceable by law
Vesting Schedules (1989 revision)
b. c. 100% after 5...
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This document was uploaded on 02/11/2014.
- Fall '09