Term
|
Definition
| A traditional pension benefit plan in which you receive a promised/defined payout at retirement. |
|
|
Term
| Noncontributory Retirement Plan |
|
Definition
| A retirement plan in which the employer provides all the funds and the employee does not need to contribute. |
|
|
Term
| Contributory Retirement Plan |
|
Definition
| A retirement plan in which the employee provides funds for the plan. |
|
|
Term
|
Definition
| A pension fund that allows you to retain and transfer any pension benefits already earned to another pension plan if they leave the company. |
|
|
Term
|
Definition
| To gain the right to the retirement contributions and earnings on these contributions made by your employer in your name. |
|
|
Term
|
Definition
| A pension plan in which the employer makes pension contributions directly to a trustee, who holds the funds in the employee's name. |
|
|
Term
|
Definition
| A pension plan in which the benefits are paid out of the current earnings and are paid on a pay-as-you-go basis. |
|
|
Term
| Defined-contribution Plan |
|
Definition
| A retirement plan in which workers contribute a percentage of their pay, plus a predetermined rate of interest. |
|
|
Term
|
Definition
| A pension plan in which the company's contributions vary depending on the firm's performance. |
|
|
Term
|
Definition
| A pension plan in which the employer contributes a set percentage of employee's salaries to the fund. |
|
|
Term
| Employee Stock Ownership Plan (ESOP) |
|
Definition
| A retirement plan in which the retirement funds are invested directly into the company's stock. This is very risky for the employee. |
|
|
Term
|
Definition
| An annuity of a certain number of years, which cannot go beyond when the individual turns 90. |
|
|
Term
|
Definition
| An annuity in which you receive a set monthly amount until you die. |
|
|
Term
| Registered Retirement Income Fund (RRIF) |
|
Definition
| An extension of an RRSP that allows for minimum withdrawals and earns tax-free income. |
|
|
