EMPLOYEE PROVIDED PENSION PLANS

Question 1

MEPP (Multi employer pension plan)
group plan

Answer 1

• vesting period usually 2 yrs
  -after period- contributions belong to employee as well as when they leave the company

Question 2

DBPP (defined benefit pension plan)

Answer 2

-ONLY plan where pension is fixed and known in advance
-employer and employee can contribute
-pension based on employment income and # of yrs of service

Question 3

DCPP (defined CONTRIBUTION pension plan)

Answer 3

-Pension is based on contribution
-employer (BOSS) contribution is mandatory
-employee contribution isn’t

Question 4

PRPP (Pooled registered pension plan)

Answer 4

SAME as DCPP but employer contribution IS NOT mandatory

Question 5

DPSP (Differed profit-sharing plan)

Answer 5

-ONLY PLAN where ONLY employees can contribute
- company shares profit w/ employees