Corporate Pension Plan

Filed Under »
Dictionary Says

Definition of 'Corporate Pension Plan'

A formal arrangement between a company and its employees - or the employees' union - that provides funding for the employees' retirement. This pool of funds can be financed in several ways and will eventually be used to make periodic payments to retired employees. In most cases, both employer and employees make regular contributions to the plan. In the past, employers were wholly responsible for contributing to the plan based on an employee's work, length of employment and position held.

Investopedia Says

Investopedia explains 'Corporate Pension Plan'

Two of the most common corporate pension plans are the defined-benefit and defined-contribution plans. With defined-benefit plans, employee retirement benefits are calculated according to a formula, usually based on duration of employment and salary history, and it is the employer's responsibility to come up with the necessary cash to fund the plan. Defined-contribution plans, on the other hand, offer no guarantee on the amount of benefit that an employee will receive at retirement; the payout from this plan rests solely on the success of the investment plan.

Many corporate pension plans promise to fund the living requirements of retired employees until they die. Not surprisingly, financing them can put a strain on corporations. As a result, many companies are changing their pension plans from defined benefit to defined contribution. 
Search results for

'Corporate Pension Plan'

  • The Defined-Benefit Plan's Many Problems

    http://www.investopedia.com/articles/retirement/10/demise-defined-benefit-plan.asp
    ... DB Plan Assumptions, Issues to Consider, Impact on PBO. ... rate increases the ability
    of corporate management to ... by manipulating the net pension liability amount ...

  • Lump Sum Versus Regular Pension Payments

    http://www.investopedia.com/articles/retirement/05/lumpsumpension.asp
    ... to cash you out of your pension plan ... it may make the offer because eliminating pension
    payments generates accounting gains that boost corporate income ...

  • Pension Law Could Reduce Your Payout

    http://www.investopedia.com/articles/retirement/07/payout.asp
    ... Because corporate bonds have greater risks than Treasuries, their ... could, of course,
    just take your pension in monthly ... files for bankruptcy and the plan has to ...

  • The Investing Risk Of Underfunded Pension Plans

    http://www.investopedia.com/articles/analyst/03/050803.asp
    ... If the fair value of the plan assets is less ... be used to minimize any adverse impact
    on corporate earnings ... need to contribute additional money to the pension fund ...

  • Variable Annuities: The Do-It-Yourself Pension Plan

    http://www.investopedia.com/articles/retirement/09/variable-annuities-diy-pension-plan.asp
    ... pensions.) Build Your Own Pension Plan Variable annuities ... in your employer-sponsored
    retirement savings plan or your ... You Should Know About Corporate-Owned Life ...

  • Lifetime Income Annuities: The Instant Pension Plan

    http://www.investopedia.com/articles/retirement/09/income-annuities-pension-plan.asp
    Lifetime Income Annuities: The Instant Pension Plan. ... Related Articles. Everything
    You Should Know About Corporate-Owned Life Insurance. ...

  • Retirement Planning: Why Plan For Retirement? | Investopedia

    http://www.investopedia.com/university/retirement/retirement1.asp
    ... Corporate collapses, such as the high-profile ... participants a specified monthly pension
    for the ... requiring increased contributions from plan sponsors, benefit ...

  • 10 Legal Business Practices Of Dubious Ethics

    http://www.investopedia.com/articles/economics/12/legal-business-practices-of-dubious-ethics.asp
    ... were poised to get out, they terminated the plan and gave ... a lump sum check instead
    of a pension check for ... required to do battle with a corporate behemoth, he ...

  • The Demise Of The Defined-Benefit Plan

    http://www.investopedia.com/articles/retirement/06/DemiseofDBPlan.asp
    ... workers participating in a defined benefit plan are affected ... Corporate America defends
    these moves on the grounds ... companies to fully fund their pension plans. ...

  • Series 66 Study Guide - Special Issues for Retirement Plans ...

    http://www.investopedia.com/exam-guide/series-66/retirement-plans/qualified-retirement-plans.asp
    ... Money purchase pension plan - This requires the employer to contribute a set
    percentage of salary each year regardless of corporate profits. ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links