Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

retirement plan

Read a random definition: constructive contract

A quick definition of retirement plan:

A retirement plan is a special savings plan that helps people save money for when they stop working. It's like a piggy bank that you put money into over time, and when you retire, you can use that money to pay for things you need. Retirement plans can be set up by employers for their employees, or by individuals for themselves. There are different types of retirement plans, but they all help people save money for their future.

A more thorough explanation:

A retirement plan is a written employee benefit plan that provides retirement benefits to employees, officers, and advisers of a company. It can be a stock-purchase, savings, option, bonus, stock-appreciation, profit-sharing, thrift, incentive, pension, or similar plan. Retirement plans can be divided into two types: defined-benefit plans and defined-contribution plans.

A defined-benefit plan is a retirement plan that provides systematically for the payment of definitely determinable benefits to employees over a period of years, usually for life, after retirement. Retirement benefits under a defined-benefit plan are generally based on a formula that includes factors such as years of service and compensation. If the trust funding the plan lacks sufficient assets to pay the promised benefits, the employer is required to cover the shortfall.

Example: A company's retirement plan promises to pay its employees 60% of their average salary for the last five years of employment for every year of service. If an employee works for the company for 30 years and retires with an average salary of $100,000, they will receive $180,000 per year in retirement benefits.

A defined-contribution plan is a retirement plan in which each participant has a separate account funded by the employee's contributions and the employer's contributions. Each participant's benefits are based solely on what has accumulated in the participant's account. The most common type of defined-contribution plan is a 401(k) plan.

Example: A company's 401(k) plan allows employees to contribute a portion of their pretax salary to the plan, and the employer matches a percentage of the employee's contributions. The employee can choose investments from a list of options. At retirement, the employee's retirement benefits are based on the amount accumulated in their account.

Other types of retirement plans include:

Retirement Equity Act of 1984 | retorna brevium

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.