|Target Benefit Plan
||Contributions are based upon an actuarial valuation designed to provide a target benefit to each participant upon retirement. The plan does not guarantee that such benefit will be paid; its only obligation is to pay whatever benefit can be provided by the amount in the participants account. A hybrid of a money purchase plan and a defined benefit plan.
|Tax And Miscellaneous Revenue Act, 1988 (TAMRA)
||Among various changes, - The Act modified the rules relating to integration of qualified plans with Social Security by making non-discrimination rules applicable to integrated plans; (1) it provides that, generally, only employer-provided contributions and benefits are taken into account in determining whether contributions and benefits satisfy the integration rule (2) TAMRA modifies the definition of covered compensation so that references to age 65 are changed to retirement age for social security purposes, (3) it defines average annual compensation to mean highest average annual compensation for any period of atleast three consecutive years (or, If shorter, the participants full period of service) so that defined benefit plans with benefits based on career average compensation are not prevented from integrating. The Act modified the minimum distribution rule by providing that the date of retirement is irrelevant and distributions must begin not later than April 1 of the calendar year following the calendar year when the employee reaches age 70 112. - TAMRA amended the definition of a cafeteria plan to provide that a plan offering only a choice among nontaxable benefits is not a cafeteria plan.
|Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
||Lowered limits on contributions and benefits for corporate plans; certain loans from plan to be treated as distributions; reduced estate tax exclusion for retirement plan death benefits to maximum of $100,000; repealed special KEOGH plan and subchapter S restrictions; stopped employers and health plans from forcing employees ages 65 to 69 to use Medicare rather than the group health plan.
|Tax Reform Act of 1986 (TRA86)
||A law that changed the ground rules for much of compensation planning. Termination of favored tax treatment for capital gains, for example, has made many former executive-compensation techniques less attractive. Change of treatment of benefits has altered the relative attractiveness and feasibility of benefit types.
||Before-tax or taxable contributions are member contributions made through payroll deductions on or after (12-23-96) and are excluded from a members taxable income for the year in which they are made. They also include those contributions that are rolled over into a contributory plan either from an IRA or another qualified employer plan. Taxable contributions are not taxable until received either as retirement income or as a lump-sum payment when a member terminates or dies.
||A temporary employee is a plan sponsors employee who works on an intermittent or as-needed basis.
||Value of direct pay plus benefits package, including money, benefits, services and in-kind payments.
||A person, bank or trust company that has responsibility over financial aspects (receipt, disbursement and investment of pension funds). Where this responsibility is not exercised by a bank or trust company, it is usually exercised by a board of trustees in which the individual trustee has but one vote. - A person, bank or trust company designated in the trust agreement as having responsibility for holding and investing plan contributions (and possibly having responsibility over other financial aspects of the plan). - One who acts in a capacity of trust as a fiduciary and to whom property has been conveyed for the benefit of another party. Under the terms of ERISA, a fiduciary is one who occupies a position of confidence or trust and who exercises any power of control, management or disposition with respect to monies or other property of an employee benefit fund or who has authority or responsibility to do so.