Unit Benefit Plan

Dictionary Says

Definition of 'Unit Benefit Plan'

An employer-sponsored pension plan that provides retirement benefits based on a dollar amount or, more typically, a percentage of the employee's earnings for each year of service. A unit benefit plan is usually based on a percentage ranging from 1.25-2.5%. When the employee reaches retirement, his or her years of service are multiplied by the percentage multiplied by the career average salary to determine the employee's annual retirement benefit.
Investopedia Says

Investopedia explains 'Unit Benefit Plan'

A unit benefit plan provides retirement benefits based on the employee's compensation and how long he or she has been employed by the company. If an employee has 35 years of service, for example, with final average earnings of $120,000 and the unit benefit plan percentage is 2.0%, the employee's annual retirement benefit would be calculated as follows:  

Years * average earnings * compensation percentage = annual retirement benefit.  

Applying the above example to the calculation yields:   35 * 120,000 *.02 = $84,000

Search results for

'Unit Benefit Plan'

  • Series 6 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/employer-sponsored-retirement-plans.asp
    ... rare today. A defined-benefit plan is designed to provide the employee with
    a fixed monthly income at retirement. The monthly amount ...
  • Series 6 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/review-questions.asp
    ... Individual retirement account; Pension and profit-sharing plan;
    Defined-benefit plan. Which of the following determines the amount ...
  • 5 Investments You Can't Hold In An IRA/Qualified Plan

    http://www.investopedia.com/articles/retirement/11/impermissable-retirement-investments.asp
    ... stocks, bonds, mutual funds, annuities, unit investment trusts ... the amount of the
    death benefit must qualify as "incidental" compared to the plan balance ...
  • Series 7 Study Guide - Retirement Accounts - Types of Employee ...

    http://www.investopedia.com/exam-guide/series-7/retirement/qualified-plan-erisa.asp
    ... 6.3 Unit investment trusts (UITs); 6.4 Other Types ... corporation, known as the Pension
    Benefit Guaranty Corporation ... Protects the plan from mismanagement and misuse ...
  • 4 Steps To Creating A Stellar Business Plan

    http://www.investopedia.com/articles/pf/08/create-business-plan-how-to.asp
    ... demonstrates how your target market will benefit from and ... This part of the plan will
    include advertising ... business units, state the individual price per unit. ...
  • Series 6 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/review-answers.asp
    ... 11. Investment Companies: 11.1 Introduction; 11.2 Unit Investment Trust (UIT); 11.3
    Investment Company Registration, Regulations and ... "d" - A defined benefit plan ...
  • Capitalizing On Seasonal Effects

    http://www.investopedia.com/articles/05/seasonaltrends.asp
    ... If you have a monthly plan, you should consider making regular contributions in ... than
    the best interest of their mutual fund's unit holders ... How can you benefit? ...
  • Series 6 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/coverdell-education-savings-plan.asp
    ... Companies: 11.1 Introduction; 11.2 Unit Investment Trust ... and College Savings Plans -
    Coverdell Education Savings Plan. ... that is established for the benefit of ("FBO ...
  • Series 6 Study Guide - Marketing and Sales Presentations - FINRA ...

    http://www.investopedia.com/exam-guide/finra-series-6/marketing-presentations/finra-conduct-rule-2211.asp
    ... governmental entity or subdivision thereof; employee benefit plan that meets the
    requirements of Section 403(b) or Section 457 of the Internal Revenue Code and ...
  • Series 7 Study Guide - Retirement Accounts - Other Retirement ...

    http://www.investopedia.com/exam-guide/series-7/retirement/keogh-403b-plans.asp
    ... 6.3 Unit investment trusts (UITs); 6.4 Other Types of Investment ... can be set up as
    either a defined-benefit or defined-contribution plan, although most ...

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