Retirement Plans Key Terms

Learn retirement plans key terms to make informed decisions about your pension portfolio

Most of us depend on professional help when it comes to choosing retirement plans. The subject is steeped in financial lingo that is not part of our everyday vocabulary. This lingo may be hard to bypass since the concepts of retirement planning require some familiarity with key financial terms. If you're shopping around for a retirement plan and aren't sure where to start, your best bet is to learn these key terms so you can make the right choice.

Related Reading: Get the glossary of terms for 401(k) plans.

Defined benefit

Also referred to as defined contribution, defined benefit means a plan ensuring specific monies will be paid once an individual reaches retirement.

National Institute of Pension Administrators

The National Institute of Pension Administrators embodies the agendas of professionals who administer employee pension plans.

Employee Plans News

Employee Public News is a magazine devoted to information on retirement plans that is put out by the IRS.
IRS to read about the issues discussed in the Employee Public News and access archived issues.

ERISA

Passed as federal law, ERISA is also known as the "Employee Retirement Income Security Act." This act allows the federal government to get involved in the administration of pension plans by private industries.
Department of Labor spells out the minimum standards for private pension plans that the federal government mandates under ERISA. Get information on the kinds of proceedings ERISA requires and the rights it bestows on participants.

Pension Benefit Guaranty Corporation

The Pension Benefit Guaranty Corporation, or PBGC, watches over the retirement plans of millions of individuals employed in the private sector.
Pension Benefit Guaranty Corporation, you'll learn how the PBC is funded, how it pays retirement benefits and how it guarantees benefits.

401(k)

A 401(k) retirement plan lets employees decide how much money they want to contribute each month to a plan administered by their employers.

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