9-3&9-4
qualified joint and survivor annuity
A QJSA is when retirement benefits are paid as a life annuity (a series of payments, usually monthly, for life) to the participant and a survivor annuity over the life of the participant's surviving spouse (or a former spouse, child or dependent who must be treated as a surviving spouse under a QDRO)
cost of living adjustment
A cost-of-living adjustment is made to social security and supplemental security income to counteract the effects of inflation. Cost-of-living adjustments (COLAs) are typically equal to the percentage increase in the consumer price index for urban wage earners and clerical workers (CPI-W) for a specific period
lump-sum payment
A lump sum is a single payment of money, as opposed to a series of payments made over time (such as an annuity). ... Prudential was of the view that for many retirees, a lump sum at the time of retirement was the most tax efficient option.
mortality table
A mortality table shows the rate of deaths occurring in a defined population during a selected time interval or survival from birth to any given age.
single life annuity
An annuity that only provides payments to one person. That is, payments cease when the annuitant dies
permanent life insurance
An umbrella term for life insurance plans that do not expire (unlike term life insurance) and combine a death benefit with a savings portion.
decreasing term insurance
Decreasing term insurance is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate.
deferred compensation
Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a later date after which the income was earned.
group term life insurance
Group term life insurance is a group benefit offered to employees who meet eligibility requirements, such as being a permanent employee or 30 days after hire.
increasing term insurance
Increasing term life insurance. A term life policy that increases the death benefit each year during the term. Concurrently, as the death benefit increases, so does the premium. If kept long enough, the premium on this policy will increase faster than the death benefit.
level term insurance
Level-premium insurance is a type of term life insurance for which the premiums remain the same throughout the duration of the contract.
pension protection act
Pension Protection Act Of 2006 - PPA' An act of legislation that makes a large number of reforms to U.S. pension plan laws and regulations.
employee retirement income security act
The Employee Retirement Income Security Act of 1974 (ERISA) (Pub.L. 93-406, 88 Stat. 829, enacted September 2, 1974, codified in part at 29 U.S.C. ch. 18) is a federal United States tax and labor law that establishes minimum standards for pension plans in private industry.
pension benefit guaranty corporation
The Pension Benefit Guaranty Corporation (PBGC) is an independent agency of the United States government that was created by the Employee Retirement Income Security Act of 1974 (ERISA) to encourage the continuation and maintenance of voluntary private defined benefit pension plans, provide timely and uninterrupted
cash value
The cash value of an insurance contract, also called the cash surrender value or surrender value, is the cash amount offered to the policy owner by the issuing life carrier upon cancellation of the contract.
universal life insurance
Universal life insurance (often shortened to UL) is a type of cash value life insurance, sold primarily in the United States of America.
variable life insurance
Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy.
defined benefit plan
a company pension plan in which an employee's pension payments are calculated according to length of service and the salary they earned at the time of retirement.
beneficiary
a person who derives advantage from something, especially a trust, will, or life insurance policy.
pension
a regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed during their working life.
premium
an amount to be paid for an insurance policy.
consumer price index
an index of the variation in prices paid by typical consumers for retail goods and other items.
term life insurance
life insurance that pays a benefit in the event of the death of the insured during a specified term. Compare with whole life insurance.
whole life insurance
life insurance that pays a benefit on the death of the insured and also accumulates a cash value.
vested
secured in the possession of or assigned to a person.
face value
the value printed or depicted on a coin, banknote, postage stamp, ticket, etc., especially when less than the actual or intrinsic value.