Defining benefits a b c accrued based on years of

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Unformatted text preview: Benefits: a. b. 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 VESTED: 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: a. b. 2. 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 Defined based on actuarial tables and length of service. Under ERISA, these are corporate liabilities enforceable by law are Vesting Schedules (1989 revision) a. b. c. 100% after 5...
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This document was uploaded on 02/11/2014.

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