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A pension fund is a fund that accumulates capital to be paid out as a pension for employees when they retire at the end of their careers. Pension funds typically aggregate large sums of money to be invested into the capital markets, such as stock and bond markets, to generate profit (returns).
A pension plan is an employee benefit plan established or maintained by an employer or by an employee organization (such as a union), or both, that provides retirement income or defers income until termination of covered employment or beyond.
A defined benefit or DB pension (also known as a final salary pension) is a special type of workplace pension. Instead of building up a pension pot over time, it provides you with a guaranteed annual income for life, based on your final or average salary (hence the name).
The summary plan description is an important document that tells participants what the plan provides and how it operates. It provides information on when an employee can begin to participate in the plan and how to file a claim for benefits.
A pension pays you a regular income to live on when you retire. It is one of the most tax efficient ways to save for your retirement because you can get tax relief on the money you pay in.
A summary plan description (SPD) is a document an employer gives to their employees who are participating in retirement or health benefits plans covered under the U.S. Department of Labor's Employee Retirement Income Security Act of 1974 (ERISA).
The Employee Retirement Income Security Act (ERISA) requires plan administrators to give to participants and beneficiaries a Summary Plan Description (SPD) describing their rights, benefits, and responsibilities under the plan in understandable language. The SPD includes such information as: Name and type of plan.
Pension plans. A pension plan is an employee benefit plan established or maintained by an employer or by an employee organization (such as a union), or both, that provides retirement income or defers income until termination of covered employment or beyond.