Advanced Funded Pension Plan

Filed Under » , ,
Dictionary Says

Definition of 'Advanced Funded Pension Plan'

A pension plan that is funded concurrently with the employee's accrued benefits, such that the funds are set aside well before the employee's retirement. Advanced funded pension plans are generally defined contribution plans, and are fully funded. They can be funded by the employer alone, or by some combination of the employer and the employee.
Investopedia Says

Investopedia explains 'Advanced Funded Pension Plan'

In contrast to an advanced funded pension plan, an unfunded pension plan uses actuarial assumptions to determine the periodic contributions it makes to the plan. Defined benefit plans are more difficult to fund in advance because there are so many variables in computing the funding necessary to produce the benefit.

Articles Of Interest

  1.

    Keeping Track Of Retirement Plan Assets

    Maintain records of your pension benefits or risk losing them.

  2. The Demise Of The Defined-Benefit Plan

    Experts are making bleak predictions for your post-work years. Be prepared and plan for your future.

  3. An Overview Of The Pension Benefit Guaranty Corporation (PBGC)

    Find out how this "retirement lifeguard" can save drowning plans, and why it's unlikely to be a long-term solution to the pension problem.

  4. Pension Plans: Pain Or Pleasure?

    Employees have a love/hate relationship with this retirement option.

  5. The 401(k) and Qualified Plans Tutorial

    Learn about eligibility requirements, contribution to and distribution rules for these retirement plans.

  6. Are You Really Retired Just Because You Stopped Working?

    Retirement doesn't have to mean the end of working, it can be just the end of working to get by every week. Retirement should be about working only if you want to, not because you have to.

  7. How To Cut Your Mutual Fund Fees By Up To 90%

    Most mutual funds don’t come close to beating the indexes they’re compared against. And yet they carry steep fees for active management. Find out how a little research and effort can cut your ...

  8. Pay Attention To The Proxy Statement

    Don't overlook this overview of a company's well-being.

  9. Explaining Amortization In The Balance Sheet

    Amortization is important to account for intangible assets. Read to find out more about amortization.

  10. 5 Ways To Protect And Grow Your Retirement: Whether You’re 45 Or 75 Or Somewhere In Between

    Investors who take steps now can shield themselves from the coming challenges thrust upon retirees.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center