Pension

pensionssuperannuationretirement planstate pensionpension planold age pensionpension schemeretirement planspension systemold age pensions
A pension (, from Latin pensiō, "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments.wikipedia
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Retirement

retiredretireearly retirement
A pension (, from Latin pensiō, "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments.
Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when bodily conditions no longer allow the person to work any longer (by illness or accident) or as a result of legislation concerning their position.

401(k)

401K401(k) plan401(k) plans
The 401(k) is the iconic self-funded retirement plan that many Americans rely on for much of their retirement income; these sometimes include money from an employer, but are usually mostly or entirely funded by the individual using an elaborate scheme where money from the employee's paycheck is withheld, at their direction, to be contributed by their employer to the employee's plan. Examples of defined contribution plans in the United States include individual retirement accounts (IRAs) and 401(k) plans.
In the United States, a 401(k) plan is the tax-qualified, defined-contribution pension account defined in subsection 401(k) of the Internal Revenue Code.

Tax

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Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons.
These services can include education systems, pensions for the elderly, unemployment benefits, and public transportation.

Deferred compensation

compensationdefers compensation
Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons.
Examples of deferred compensation include pensions, retirement plans, and employee stock options.

Pensioner

retireeretireesOAP
A recipient of a retirement pension is known as a pensioner or retiree.
A pensioner is a person who collects a pension, most commonly because of retirement from the workforce.

Individual retirement account

IRAIRAsindividual retirement accounts
Examples of defined contribution plans in the United States include individual retirement accounts (IRAs) and 401(k) plans.
An individual retirement account (IRA) in the United States is a form of "individual retirement plan", provided by many financial institutions, that provides tax advantages for retirement savings.

Cash balance plan

Cash Balance Benefitcash balance planscash balances
A cash balance plan is a defined benefit plan made to appear as if it were a defined contribution plan.
A cash balance plan is a defined benefit retirement plan that maintains hypothetical individual employee accounts like a defined contribution plan.

Actuary

actuariesactuarialactuarial analysis
Typically, the contributions to be paid are regularly reviewed in a valuation of the plan's assets and liabilities, carried out by an actuary to ensure that the pension fund will meet future payment obligations.
Life actuaries, which include health and pension actuaries, primarily deal with mortality risk, morbidity risk, and investment risk.

Target benefit plan

Target benefit plans are defined contribution plans made to match (or resemble) defined benefit plans.
A target benefit plan is a type of pension plan that is similar to a defined contribution plan in that it involves fixed contributions, or a fixed range of contributions, which are set independently of a plan’s funded position.

Tax advantage

tax-advantagedexempttax
Most self-directed retirement plans are characterized by certain tax advantages, and some provide for a portion of the employee's contributions to be matched by the employer.
An example is retirement plans, which often offer tax advantages to incentivize savings for retirement.

Employee Retirement Income Security Act of 1974

Employee Retirement Income Security ActERISAEmployee Retirement Income Security Act of 1974 (ERISA)
In the United States, under the Employee Retirement Income Security Act of 1974, any reduction factor less than or equal to the actuarial early retirement reduction factor is acceptable.
For example, a defined benefit plan must pay a married participant's pension as a "joint-and-survivor annuity" that provides continuing benefits to the surviving spouse unless both the participant and the spouse waive the survivor coverage.

Insurance

insurance companyinsurance companiesinsurance industry
Many pensions also contain an additional insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries.
Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources.

Life annuity

annuityannuitieslife annuities
Retirement pensions are typically in the form of a guaranteed life annuity, thus insuring against the risk of longevity.
Continuing practice is an everyday occurrence with well-known theory founded on robust mathematics, as witnessed by the hundreds of millions worldwide who receive regular remuneration via pension or the like.

Defined benefit pension plan

defined benefitdefined benefit planfinal salary
In general, they are usually treated as defined benefit plans for tax, accounting and regulatory purposes.
A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum or combination thereof on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns.

Pension Benefit Guaranty Corporation

Pension Benefit Guarantee Corporationbenefit pension systemDirector of the Pension Benefit Guaranty Corporation
Bradley Belt, former executive director of the PBGC (the Pension Benefit Guaranty Corporation, the federal agency that insures private-sector defined-benefit pension plans in the event of bankruptcy), testified before a Congressional hearing in October 2004, "I am particularly concerned with the temptation, and indeed, growing tendency, to use the pension insurance fund as a means to obtain an interest-free and risk-free loan to enable companies to restructure. Unfortunately, the current calculation appears to be that shifting pension liabilities onto other premium payers or potentially taxpayers is the path of least resistance rather than a last resort."
The Pension Benefit Guaranty Corporation (PBGC) is a United States federally chartered corporation created by the Employee Retirement Income Security Act of 1974 (ERISA) to encourage the continuation and maintenance of voluntary private defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at the lowest level necessary to carry out its operations.

Taxation in the Republic of Ireland

PRSIPay Related Social InsuranceTaxation in Ireland
This is a flat rate pension, funded by the national social insurance system and is termed Pay Related Social Insurance or PRSI.
Contributions to a pension scheme can be deducted from gross income before calculation of tax; tax relief is therefore allowed on them at 40% if the contributor is paying tax at that rate.

Old-Age Pensions Act 1908

Old Age Pensions Act 1908Old Age PensionsOld-Age Pensions Act of 1908
The beginning of the modern state pension was the Old Age Pensions Act 1908, that provided 5 shillings (£0.25) a week for those over 70 whose annual means do not exceed £31.50.
The Act provided for a non-contributory old age pension for people over the age of seventy, with the cost being borne by taxpayers generally.

Pension Schemes Act 1993

Following the highly respected Goode Report, occupational pensions were covered by comprehensive statutes in the Pension Schemes Act 1993 and the Pensions Act 1995.
The Pension Schemes Act 1993 ( c 48) is a United Kingdom Act of Parliament that concerns the administration of occupational pensions.

Pensions Act 2008

Pensions Bill
Following that, the Pensions Act 2008 has set up automatic enrolment for occupational pensions, and a public competitor designed to be a low-cost and efficient fund manager, called the National Employment Savings Trust (or "Nest").
The principal change brought about by the Act is that all workers will have to opt out of an occupational pension plan of their employer, rather than opt in.

Retirement plans in the United States

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The defined benefit plan had been the most popular and common type of retirement plan in the United States through the 1980s; since that time, defined contribution plans have become the more common type of retirement plan in the United States and many other western countries.
In a defined benefit (or pension) plan, benefits are calculated using a fixed formula that typically factors in final pay and service with an employer, and payments are made from a trust fund specifically dedicated to the plan.

Social Security (United States)

Social SecuritySocial Security ActSocial Security System
For examples, see National Insurance in the UK, or Social Security in the United States of America.
Although Social Security is sometimes compared to private pensions, the two systems are different in a number of respects.

Pensions Act 1995

1995 Pensions Act
Following the highly respected Goode Report, occupational pensions were covered by comprehensive statutes in the Pension Schemes Act 1993 and the Pensions Act 1995.
The Pensions Act 1995 ( c 26) is a piece of United Kingdom legislation to improve the running of pension schemes.

Pensions Commission

Turner Report
In 2002 the Pensions Commission was established as a cross party body to review pensions in the United Kingdom.
The Pensions Commission was a non-departmental public body in the United Kingdom, reporting to the Secretary of State for Work and Pensions, set up to keep under review the regime for UK private pensions and long-term savings.

Superannuation in Australia

superannuationAustralian superannuationSuperannuation Guarantee
Called retirement plans in the United States, they are commonly known as pension schemes in the United Kingdom and Ireland and superannuation plans (or super ) in Australia and New Zealand.
MySuper is part of the Stronger Super reforms announced in 2011 by the Julia Gillard Government for the Australian superannuation industry.

Rashidun Caliphate

RashidunRashidun caliphRashidun Caliphs
The concept of a pension appeared in the 7th-century Rashidun Caliphate as a form of Zakat (charity), one of the Five Pillars of Islam, under early Islamic law.
Social welfare and pensions were introduced in early Islamic law as forms of zakāt (charity), one of the Five Pillars of Islam, since the time of Umar.