Term Answer Description
ERISA
Vested rights
Noncontributory
pension plan
Contributory
pension plan
Defined contribution
Defined contribution plan
Defined benefit plan
Qualified pension plan
Profit-sharing plan
Pension Protection
Act
Cash-balance plan
A. This arrangement has employees of a firm participate in the company's earnings.
B. This law permits uncovered workers to establish individual tax-sheltered retirement plans.
C. Under this plan, the employer not only makes the contributions (based on a percentage of an employee's salary), controls the investment, and guarantees a given payout at retirement, it also creates a separate "account" that details the employee's accumulated balance.
D. This pension plan specifies the contribution that each party makes and does not promise the size of the benefit at retirement.
E. Based on a formula, it computes the benefits, not contributions, to be paid out.
F. This pension plan imposes certain criteria that must be met before the employee can obtain a nonforfeitable right to a pension.
G. This pension plan meets specified criteria established by the Internal Revenue Code.
H. This federal law shores up the financial integrity of private traditional (defined benefit) plans.
I. This type of plan has the employee and employer making the total contributions.
J. The employer pays the total cost of the benefits in this pension plan.
