Exploring the Mechanics of a Plan One of the key aspects of a plan is the identification of the target audience or beneficiaries. This involves determining who will benefit from the plan and how it will impact their lives. For example, in the case of a pension plan, the target … …
What is Replacement Rate? The replacement rate is a key concept in the field of pensions and retirement planning. It refers to the percentage of a person’s pre-retirement income that is replaced by their pension or retirement savings. In other words, it measures the extent to which an individual can … …
Defined Benefit Plans One of the key features of a defined benefit plan is that the employer bears the investment risk. This means that the employer is responsible for ensuring that there are sufficient funds to pay the promised benefits, regardless of the performance of the investments made with those … …
What are Overfunded Pension Plans? An overfunded pension plan is a type of retirement plan where the assets held by the plan exceed the amount of money needed to pay out the promised benefits to retirees. In other words, the plan has more money than it needs to fulfill its … …
What Are Lump-Sum Payments? A lump-sum payment is a one-time payment made in a single installment, rather than in regular installments over a period of time. It is a fixed amount of money that is paid to an individual or entity, usually as compensation for a specific event or circumstance. … …
Key Strategies for LDI 1. Duration Matching One of the primary strategies employed in LDI is duration matching. Duration is a measure of the sensitivity of the value of a bond or a portfolio of bonds to changes in interest rates. By matching the duration of the assets in the … …
Underfunded Pension Plan: Definition Underfunded pension plans typically arise when a company fails to contribute enough money to its pension fund to meet its future obligations. This can occur due to various reasons, such as poor investment performance, economic downturns, or inadequate funding policies. When a pension plan becomes underfunded, … …
Teacher Retirement System (TRS) The Teacher Retirement System (TRS) is a pension program that provides retirement benefits to teachers and other educational employees in certain states. It is designed to help educators save for their future and ensure financial security after their careers in the education field. TRS operates as … …
Superannuation: A Comprehensive Guide to Retirement Plans Superannuation plans are typically offered by employers as part of their employee benefits package, although individuals can also set up their own superannuation funds. These plans allow individuals to contribute a portion of their income, which is then invested and grows over time. … …
About OTPPB The Ontario Teachers’ Pension Plan Board (OTPPB) is one of the largest pension funds in Canada. With over 330,000 members, we are committed to providing secure and sustainable pensions for Ontario’s teachers. Our Mission At OTPPB, our mission is to invest and manage the pension fund assets to … …
What is a Money Purchase Plan? A money purchase plan is a type of retirement savings plan that allows individuals to contribute a certain amount of money to their retirement account on a regular basis. This type of plan is typically offered by employers as a benefit to their employees. … …
Keogh Plan: All You Need to Know Keogh Plans offer tax advantages similar to those of other retirement savings plans, such as Individual Retirement Accounts (IRAs) and 401(k) plans. However, Keogh Plans have specific rules and regulations that apply only to self-employed individuals and small business owners. There are two … …
Government Pension Fund of Norway (GPFN) Overview The Government Pension Fund of Norway (GPFN) is a sovereign wealth fund established by the Norwegian government in 1990. It is one of the largest pension funds in the world and is managed by Norges Bank Investment Management (NBIM). The main objective of … …
What is a Deferred Profit Sharing Plan (DPSP)? A Deferred Profit Sharing Plan (DPSP) is a type of retirement savings plan that allows employees to share in the profits of their company. It is a voluntary plan that is offered by employers as a way to incentivize and reward their … …
What is a Cash Balance Pension Plan? A cash balance pension plan is a type of retirement savings plan that combines features of both traditional defined benefit plans and defined contribution plans. In a cash balance plan, the employer contributes a set percentage of an employee’s salary into an individual … …