What are the different types of pension annuits?
Pension annuity in the US were usually established for the purpose of providing pension income for workers. Employers can create them in favor of their employees, or trade unions can offer them in favor of their members working for various participating employers. Most of them are funded by a combination of employees and employers' contributions, although a small percentage is funded exclusively to the employer. The advantage is usually paid monthly for pensioners who meet the minimum standards of age and years of service and can be regularly modified to take into account the cost of living. Some pension plans pay their pensioners directly; Others buy pension annuity for pensioners from the insurance company. The plan of defined benefits pays a monthly amount usually based on earnings and retirement service years. In the US, Very General formula is 2.5% of average earnings over the last two years of service for each year of service, with a limitation of 75% or 80% of the final earnings. According to such a plan would after 20 years of work workVník, who meets the minimum age requirements, received 50% of his average earnings in the last two years before retirement.
On the other hand, the defined post is planned, accumulating all contributions contributed on behalf of the employee plus earnings. The employee's monthly advantage is based on the premium -matematic prerequisites for the life of the pensioner. This approach, like more modern pension savings plans such as IRA, 401 (K) and 403 (B). In many cases, both defined benefits and defined contributions can allow participants to download their contributions plus interest in a flat -rate amount after retirement, in exchange for reduced advantage only on the basis of the employer's contributions.
pension annuity can also be classified according to their advantages. Whether the benefit or defined post is defined, the advantage is generally worth a pensioner, even if a fewThey only apply for a specified period of time and then stop. However, if the pensioner is married, the husband must be included in the calculations. In countries that allow such a possibility if the participant selects a plan that pays 100% unmarried benefits, then the husband gets no advantage as soon as the pensioner dies. Four or five other payment formulas that are designed to provide income to the surviving husband after the pensioner's death are generally offered mostly pension plans.
Generally, the participants of the plan choose from different options when they first register for the plan, but can change their selections whenever they care. Married participants generally have to obtain the consent of their spouses for any withdrawals that reduce their wife. However, as soon as monthly pension payments begin, the selection generally becomes irrevocable.
participants usually fear that any pension plans they contributed to them or their husbands pay at least what they contributed, plus any earnings. The problem is in tOm that the funds that contribute to their pension plans over the years will not return to the employer or insurance carrier if they die shortly after I start payments of pensions. In order to solve this problem, pension annuity provides payments for a "certain period". If the appointed recipient - pensioner and wife - die before the time certainly ends, the payment is made to the third recipient until the time expires, or the lump sum representing the unpaid balance of the annuity is paid to the pensioner farm.