Large pension plans
are usually considered an expense to the company which sponsors the plan.
Hybrid pension plans
are defined-benefit plans in which employees' benefits are expressed in terms of immediate lump-sum payments instead of as annuities after retirement.
Employees of companies that have no pension plans
, however, will have to wait until March 2001 for the government-run National Pension Fund Association, which accepts individual subscribers, to be prepared, they said.
Most pension plans
will offer a wide variety of funds to choose from and will generally include some Equity linked funds for the more adventurous, and others such as With Profits for the more cautious.
But critics recognized that the Clark amendment, if passed, would put the federal government in the position of regulating and competing with private pension plans
rather than monopolizing its own.
But as large private employers adopted pension plans
for their employees, opposition to coverage for public servants began to decline.
Company: Crow-Burlingame City: Little Rock Contact: Don Mahurin Funds: Defined Benefits Pension Plan
Due to the complex changes being introduced, commencing in 1991 employees who are members of pension plans
will find it extremely difficult to estimate their RRSP limits.
The problems of the current system began as early as the 19th century, when the railroads established their own private pension plans
. Instead of stockpiling reserves, they ladled out cash on a "pay-as-you-go' basis, paying current benefits out of current revenues.
Called Pooled Registered Pension Plans
(PRPPs), the plan was proposed because of provincial opposition, the minister said.
Irda has also disallowed partial withdrawals from pension plans
and insists that these should have element of life or health insurance.
The bulk of this assistance has gone to General Motors (GM) and Chrysler, who sponsor some of the largest defined benefit pension plans
insured by the federal Pension Benefit Guaranty Corporation (PBGC).
Prior to 2002 this 25 percent limit provided money purchase pension plans
with an advantage over profit sharing plans, since the deduction for profit sharing contributions was limited to 15 percent of payroll.
THE BUSH ADMINISTRATION wants Congress to let employers sell or otherwise transfer pension plans
under certain circumstances.
Companies have been terminating or freezing pension plans
for the past 22 years.