Pop-Up Option

Filed Under »
Dictionary Says

Definition of 'Pop-Up Option'

A joint and survivor pension option, generally limited to married couples, that is triggered if the pension plan member's spouse predeceases the plan member. The pop-up option then boosts the plan member's pension after the spouse's death. The increase in the pension amount is made possible by the fact that the pension plan no longer has to provide a spousal pension once the plan member passes away.
Investopedia Says

Investopedia explains 'Pop-Up Option'

This option has a cost attached to it. All things being equal, a plan member who opts for the pop-up option will receive a smaller pension than a member who does not choose the pop-up option. Since the plan member's spouse would receive this lower pension amount if the plan member passes away first, due consideration should be given to the relative states of health of the plan member and the spouse, in addition to which a cost-benefit analysis on the merits of the pop-up option itself may be necessary.

Articles Of Interest

  1.

    The Investing Risk Of Underfunded Pension Plans

    Determine the risk to a company's EPS and financial condition resulting from an underfunded pension plan.

  2. An Estate Planning Must: Update Your Beneficiaries

    Life changes make it time to rewrite your plan's designations.

  3. Top 6 Uses For Bonds

    Individuals and institutions can use bonds in many ways: from the most basic, such as for preserving principal or saving and maximizing income, to more advanced uses, like managing interest-rate ...

  4. How To Evaluate Pension Risk By Analyzing Annual Costs

    Learn how to assess whether a company's pension plan is posing more risks than what the footnotes indicate.

  5. The Demise Of The Defined-Benefit Plan

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

  6. How To Cure An Ailing 401(k)

    High-cost, outdated plans can prevent your retirement portfolio from thriving.

  7. I retired and transferred part of my pension distribution to a Roth IRA. If I am over 55, do I still qualify for the age 55 exemption?

    The age 55 exception applies only to distributions from qualified plans and 403(b) accounts. Once the assets have been credited to an IRA, that benefit no longer applies to those assets. You ...

  8. 10 Retirement-Wrecking Moves

    Don't let these common mistakes put a crack your nest egg.

  9. The 10 Worst Financial Decisions You Can Make In Retirement

    In this time of fiscal uncertainty, there are many financial decisions that can make or break you during your formative years.

  10. Mandatory Pension Savings: Should Employers And Employees Be Forced To Make Contributions?

    The scale of the pension crisis in the U.S. cannot be denied, and there's a growing movement that supports the mandatory pension system that's been created in Australia and other parts of the ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=3df3fa1dace81972a79a232e5bb19f5b