Classification of Pension Plans
There are two main criterions to distinguish Pension Plans. The first criterion is the asset base for the liabilities for benefits promised to plan participants or employees:
1. Pension plans without a fund ( pay as you-go plans)
2. Pension plans with a fund (funded pension plans). (more…)
Defined contribution plans have several characteristics involving the following factors:
• Some plans allow you to defer a portion of your compensation and contribute it to the retirement fund, (more…)
Retirement plans come in all shapes and sizes, but most plans fall into a few broad types. The following is a list of the major categories. I discuss the individual plans in detail later in the book.
A defined benefit plan is a retirement arrangement in which your employer guarantees the benefit. (more…)