Identify and describe the similarities and differences of the two types of pension or retirement plans that the Employee Retirement Income Security Act (ERISA) covers.
Answer:
Employee Retirement Income Security Act (ERISA): The Employee Retirement Income Security Act of 1974 is a federal United States tax and labor law that establishes minimum standards for pension plans in private industry. It contains rules on the federal income tax effects of transactions associated with employee benefit plans.
The Employee Retirement Income Security Act; The main purpose of ERISA is to protect the interests of employees (and their beneficiaries) who are enrolled in employee benefit plans, and to ensure that employees receive the pensions and group-sponsored welfare benefits that have been promised by their employers.
similarities and differences between the two types of pension or retirement plan that the Employee Retirement Income Security Act (ERISA):
A Simplified Employee Pension Plan (SEP) is a relatively uncomplicated retirement savings vehicle. A SEP allows employees to make contributions on a tax-favored basis to individual retirement accounts (IRAs) owned by the employees. SEPs are subject to minimal reporting and disclosure requirements. Under a SEP, an employee must set up an IRA to accept the employer's contributions. Employers may no longer set up Salary Reduction SEPs.
However, employers are permitted to establish SIMPLE IRA plans with salary reduction contributions. If an employer had a salary reduction SEP, the employer may continue to allow salary reduction contributions to the plan.
Pension Benefit Guaranty Corporation (PBGC) benefit plan promises a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $100 per month at retirement. Or, more commonly, it may calculate a benefit through a plan formula that considers such factors as salary and service - for example, 1 percent of average salary for the last 5 years of employment for every year of service with an employer. The benefits in most traditional defined benefit plans are protected, within certain limitations, by federal insurance provided through the Pension Benefit Guaranty Corporation (PBGC).
*hope this is helpful to you, thank you & rate.
Identify and describe the similarities and differences of the two types of pension or retirement plans...
What is the primary purpose of the Employee Retirement Income Security Act (ERISA)? a. ERISA ensures that workers covered by state and federal government pension plans receive benefits from those plans in accordance with their credited years of service with their employers. b. ERISA ensures that workers covered by private pension plans receive benefits from those plans in accordance with their credited years of service with their employers. c. ERISA requires that all companies offer private pension plans. d. None...
Describe at least two similarities and two differences in the types of grant programs provided by any two professional sports organizations. Also, identify the local or federal government initiative that the grants supports.
Describe similarities and differences between subjective relativism and ethical egoism. (4%) 9: Describe similarities and differences between divine command theory and Kantianism. (4%) 10: Describe similarities and differences between subjective relativism and act utilitarianism. (4%) 11: Describe similarities and differences between Kantianism and rule utilitarianism. (4%)
Describe the principles of fee-for-service plans and managed care plans. What are the similarities and differences? DO NOT PLAGIARIZE. ORIGINAL ANSWER ONLY
Which of the following is a benefit under the Employee Retirement Income Security Act guidelines for qualified pension plans? Executive physicals Home security Additional life insurance Payment of club dues
describe the differences and similarities between the three different types of horizontal gene transfer.
1. Which two are considered the most common forms of voluntary benefits? retirement and medical medical and profit sharing paid time off and retirement medical and paid time off 2. The Employee Retirement Income Security Act does not mandate that employers provide retirement plans for their employees. True False Both employer and employee are responsible for paying a set percentage of the employee’s earnings. What is the name of this payroll tax? Federal Insurance Contributions Act withholdings Family Medical Leave...
Under the protection of ERISA, or Employee Retirement Income Security Act (ERISA), there are stipulations in place that are for the sole purpose of protecting a participants assets. The provision of the law requires that those persons or entities who exercise discretionary control or authority over plan management or plan assets, anyone with discretionary authority or responsibility for the administration of a plan, or anyone who provides investment advice to a plan for compensation or has any authority or responsibility...
Identify functions, differences and similarities between management and leadership with examples? And describe the characterstics for successful leader.
Explain some differences with the types of health insurance plans from the perspective of an employee. What is a defined benefit pension plan, a defined contribution plan and 401k accounts. Do you have a preference for one of these? Why? What is a competency-based compensation program?*