Pension Definitions
- Defined benefit plans:
- A pension plan that determines the amount of benefit to be provided.
- The amount is determined by many variables such as age, salary levels, years of service, etc.
- Contributions must be determined to meet expected payments.
- Form versus substance of trust. Form is a trust which is a separate entity. Substance is that both assets and obligations belong to employer.
- Shortfalls and reversions belong to employer.