Basic (08-89)

RM 03201.003 Terms Used in Pension Plans - Glossary

Term Definition

Benefit Plan or Pension Plan

A plan, fund, or program of an employer or employee organization that provides retirement income to employees.

Defined Benefit Plan

A plan funded by employer (or employer and employees) providing a specific benefit formula to determine benefits payable to employees at retirement age.

Defined Contribution Plan

A plan providing retirement benefits based on each employee's account to which the employer (or employer and employee) has made contributions.

Participant

An employee or former employee covered by a benefit plan who may be eligible (or whose beneficiaries may be eligible) for benefits under the plan.

Plan Administrator

  • The employer;

  • Employee organization;

  • Association of two or more employers or employee organizations; or

  • Other person designated in a pension plan as having responsibility for maintaining the plan.

Vested Benefit

The earned benefit under a pension plan - either an immediate benefit or a future (deferred) benefit.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0103201003
RM 03201.003 - Terms Used in Pension Plans - Glossary - 07/30/1996
Batch run: 07/30/1996
Rev:07/30/1996