• Business
  • Crypto
  • Investing
  • Lifestyle
  • Money
  • Glossary
    • A
    • B
    • C
    • D
    • E
Search
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
Finance Reference
Quotes by TradingView
  • Business
    • Why PPC Advertising is Good for Your Business
      Six Signs You Need to Hire Professionals to Do Your Taxes This Year
      How to Establish a New Small Business from Scratch
      The Impact of Artificial Intelligence on Social Media Marketing
      What Is The Importance Of Web Design For Your Business?
  • Crypto
    • Crypto Market Indexes: Your Ticket to Making Money Through Crypto
      10 Benefits Of Using Crypto Debit Cards
      Everything You Need to Know About Metamask
      Anti-Money Laundering Best Practices for Crypto Firms
      You Should Invest in Bitcoin and Here’s Why
  • Investing
    • What Makes a Successful Real Estate Transaction?
      Investing vs. Online Gambling: What’s The Difference?
      Comparing Stock Market Performance vs. Real Estate Investments Through History
      How to Fast Track a Retirement Plan in Your Middle-Age
      How Much of Your IRA Should Be in Precious Metals
  • Lifestyle
    • The Top Mistakes to Avoid When Hiring a Car Accident Lawyer
      Top Tips for Snagging The Best Online Bargains
      How to Effectively Budget for a Home Renovation?
      How to Choose an Affordable Health Care Plan
      Interesting Facts about Bet9ja
  • Money
    • Ten Ways to Make the Most of Your Cash Back Rewards
      Simple Ways You Can Reduce the Cost of Your Banks Utilities
      10 Best Passive Income Ideas to Build Your Wealth
      Efficient Funding Opportunities for New and Old Social Businesses
      10 of the Best Funding Sources For Medical Offices In 2023
  • Glossary
    • Adversary and Inquisitorial Systems
      Comparing Adversary and Inquisitorial Systems
      Overhead Ratio
      What Is an Overhead Ratio?
      Non-Executive Director
      Non-Executive Director: Roles and Responsibilities
      Mothballing
      What is Mothballing & When Should You Do It?
      Night Depository
      What is a Night Depository?
      AllABCDE
  • Glossary
  • V

Variable Benefit Plan

By
rjonesx
-

What is ‘Variable Benefit Plan’

A type of retirement plan in which the payout changes depending on how well the plan’s investments perform. Variable benefit plans, also called defined contribution plans, allow the plan holder to manage his or her own account. By contrast, a defined benefit plan provides the plan holder with predetermined payments upon retirement that do not change and which are based on an eligibility formula rather than on investment returns.

Explaining ‘Variable Benefit Plan’

Variable benefit plans shift investment risk from the employer to the employee. It is possible that the employee will end up with less money from a variable benefit plan if he makes poor investment choices. However, he also has the power to make superior investment choices and end up with better benefits. Therefore, the ability of the employee to make smart investment decisions is critical in variable benefit plans.

Further Reading

  • Evaluation of financial aspects of a retirement benefit plan – patents.google.com [PDF]
  • Investment and financing constraints: Evidence from the funding of corporate pension plans – onlinelibrary.wiley.com [PDF]
  • A financing explanation for overfunded pension plan terminations – www.jstor.org [PDF]
  • The impact of taxes on corporate defined benefit plan asset allocation – onlinelibrary.wiley.com [PDF]
  • Replicating default risk in a defined-benefit plan – www.tandfonline.com [PDF]
  • Capitation and fee-for-service dental benefit plans: economic incentives, utilization, and service-mix – www.sciencedirect.com [PDF]
  • United States Pension Benefit Plan Design Innovation: Labor Unions as Agents of Change – books.google.com [PDF]
  • Incentives and disincentives for financial disclosure: Voluntary disclosure of defined benefit pension plan information by Canadian firms – www.jstor.org [PDF]
  • An empirical comparison of published replication research in accounting, economics, finance, management, and marketing – www.sciencedirect.com [PDF]
Previous articleVanilla Strategy
Next articleVariable Rate Demand Bond
rjonesx

RELATED ARTICLESMORE FROM AUTHOR

Adversary and Inquisitorial Systems

Comparing Adversary and Inquisitorial Systems

Overhead Ratio

What Is an Overhead Ratio?

Non-Executive Director

Non-Executive Director: Roles and Responsibilities

EDITOR PICKS

SPX vs SPY: Which is Better for Trading Options on the S&P 500?

Obsolete Inventory

Quarter (Q1, Q2, Q3, Q4)

Should I invest in additional life coverage?

Joint Supply

Earnings Before Tax (EBT Formula)

Latest

The Top Mistakes to Avoid When Hiring a Car Accident Lawyer

Ten Ways to Make the Most of Your Cash Back Rewards

Top Tips for Snagging The Best Online Bargains

Why PPC Advertising is Good for Your Business

How to Effectively Budget for a Home Renovation?

Simple Ways You Can Reduce the Cost of Your Banks Utilities

  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X
  • Y
  • Z
  • About
  • Accessibility
  • Privacy
  • Sitemap