Pension
A series of periodic payments, usually for life, payable monthly or at other specified intervals. The term is frequently used to describe the part of a retirement allowance financed by employer contributions.
Question: How does pension reflect in a W-2 form and how is it different from 401(k) etc? Where does pension appears in the W-2 form. Which Box within W-2 form will it appear? Does the pension has to be deducted for social security and medicare tax? Is pension a part of 401(k) and other retirement plans?
Answer: Pension does not show up as a dollar amount on the w2. There is a check box (forget what box) that indicates if you are ELIGIBLE for a pension. This check box basically is used by the IRS to determine if you are eligible to contribute to an IRA.
401K on your w2 reflects your contribution to your 401k plan (does not include any company contribution). Because your 401k is deductible from your federal tax (and some states). So, your Federal taxable wages are determined by taking your total wages and subtracting your 401k contribution (up to the established limits). Section 125 deductions also reduce your federal gross (contributions to health, dental and dependent and health savings accounts).
401k contributions do not impact your FICA(social security) or Medicare wages or tax. 401k is a defined contribution plan (because you contribute or can contribute). Pension is a defined benefit plan because it is paid for by the company. Pension will also have no impact on your fica or medicare tax or wages.
Question: How is New Pension Scheme which is going to be launched in India in April 2009? How is the new pension scheme which is scheduled to launched in India in April 2009? If compared to Templeton India pension fund and UTI Pension Fund, how will it be?
Answer: Hi,
some amount from the private company will invest into the pension scheme like PF. later age you'll receive that amount as pension like govt employee.
There is lot things are there in that. nothing like hidden matters. so don't worry just leave it.
i made the above stmt as simple as i can.
Question: What is a private pension and why is it different to state pension? I have to do a presentation for my class about private and state pension but i can't find anything on google about private pension. I also need to know the differences between the two, any information will help or a link to a good website :)
Answer: state pension is what the government give you, the private pension is what you set up yourself for your retirement
Question: How are Pension Funds tied into IPOs? And what effects does IPO have on a pension fund and vice versa? We're at a business camp and we want to know more information about pension funds and IPOs in general. So anymore information you can provide would be very helpful. Thanks!
Answer: There is no connection between pension funds and IPOs. It's possible that a particular pension fund may choose to subscribe to an IPO, but that's about all.
Question: would you join a union pension without knowing the particulars of the pension? The "opportunity" to have company pension contributions put into a union pension without getting any pertinent information regarding the "opportunity" is being put in a contract and some might vote yes to get the other things. Any responses, suggestions?
Answer: Sounds fishy to me. If it were me i would want to know exactly what i was getting into... pensions are a huuuuuge financial obligation
Question: What are the pension requirements offered by a small company to legal full-time Polish workers? What are the pension requirements offered by a small company to legal full-time Polish workers?
If a company employs no more than 8 people is it legally bound to provide a pension to it's Polish workers? Has anyone heard of SKRYBA Ltd?
Answer: As you have five or more relevant employees on your payroll, and assuming you do not provide another qualifying scheme, you are obliged to provide your employees with access to a stakeholder pension. You are not obliged to pay into it and neither are they forced to join it.
If they do then any pension benefits accrued can be transferred to a similar scheme if ever they return to Poland.
(Qualifying schemes are occupational schemes that are open to all employees within one year of starting work for you, or personal pension schemes which all employees - except those under 18 - can join, and to which you contribute at least 3 per cent of each member's basic salary. If you've got one of these you don't have to have a Stakeholder available)
It must also be possible for them to have their contributions deducted from their pay. Contributions can be less than £20 and should not be reduced due to transfer costs.
If you are required to offer a stakeholder pension, you should:
* select a scheme from the Pension Regulator's list of registered stakeholder providers
* discuss the proposed choice with your employees
* formally choose a scheme as the one to which you will give workers access
* give contact details to the workforce
* allow the designated provider access to your employees at your workplace
* make payroll deductions for employees who want to pay into the scheme, and keep a record of them
* forward contributions to the stakeholder provider
In 2012, it is expected that Personal Accounts will be introduced. This will mean that it will be compulsory for you and your employees to start to make contributions to a pension scheme if you've not done so in the past. 3% for employer, 4% for employee 1% tax relief = 8% in total. Problem with htese are that they will be more effort for the employer to administer.
Suggest that you speak to a decent IFA in your area who understands finance for businesses, but expect to pay a fee for his/her advice as there would be next to no commission for setting up a small scheme such as this.
Question: How can you tell if a pension can be attached on a court judgment- Ohio? Won a court judgment on money owed, did bank attachment, garnishment hearing, three deposits going into bank account social security, (can't touch) work pension and deceased husbands pension. Judge says pensions may be attachable, how do you find out if they are?
Answer: If the judge said that they are attachable, then they probably are. Judges are paid to know these things.
You will need to file garnishment on the pension wages.
Question: What percentage of pension does a state government employee's widows can get? My dad was a state government employee aged 65 years, who draws his own pension. My mother was a state government employee aged 61 years who passed away recently.
My question is how much percentage of my mothers pension is my father entitled to get as per Indian government law/State government law of Andhra Pradesh.
Thanks for you time.
Answer: only 50% given of the pension
Question: How does the pension program work for major league baseball? I know professional baseball has a pension program but how does it work? How long do players have to play to be eligible? What is the amount paid each year? Do players get pension payments the year they retire or do they have to wait until regular retirement age?
Answer: go to mlb.com
They get something after 10 years of service
it is more than you and I get
As they continue to pay higher salaires they get more $$$$$
You will get sick when you see what they get for being a non working person.
A c;lebrity that gets $$$$$$$$$$$$$ for wearing a special unifrom with a leather glove.
Question: How does the pension system in China work? I really need to know the insight information about China's pension system and other related issues and challenges. How does this system actually work? Also what is the organization of China's pension system including the history and facts?
Answer: the most of Chinese are farmar and they are living in country.
the farmars have not any pension in China.
Question: Is a lump sum pension payment considered ordinary income? I got a pension payment for $2,500 & it was federally taxed $500.
When i do my taxes next year will my retail pension lump sum fall under regular income with the rest of my regular pay?
I am 30 yrs old so i know i will already get taxed 10% extra.
Answer: Yes, it's ordinary.
You weren't taxed $500, you were withheld 20%. 10% for the penalty and 10% for income tax.
Unfortunately, 10% is probably *not* your tax rate. If your tax rate is higher, you will owe the difference.
Question: How to obtain pension contributions back before retirement? I have an old pension plan with my previous employer. I was there two years but want the cash. Is it possible to obtain the cash, even though I am not retiring for another 30 years?
Answer: Yeah i did once youll need to get the details of it and ring the people who deal with it.
dont forget that you will be taxed on it though
Question: Whats the difference between pension plans? What is the difference between pay as you go pension plan, personal pension plans, fully funded pension plans, and private pension plans? and what kind does Social security fall under?
Answer: Retirement plan terminology can be extremely confusing. Here is a short primer from a U.S. perspective:
Retirement Plan: Any program designed to provide income in old age.
Defined Benefit Plan: A retirement plan which is designed to provide a set benefit at retirement. Contributions are typically adjusted annually to ensure that the benefit is eventually funded. Example: A pension plan where the benefit is $50/month for each year of service with a company; a person working for 20 years could expect to get 20 x $50 = $1,000/month. This is often referred to as a "pension plan"
Defined Contribution Plan: A retirement plan which is designed to provide a retirement benefit based on a set contribution amount. Example: A company's 401(k) allows savings up to 10% of pay and matches the first 5%. A person making $40,000/year could contribute up to $4,000 and receive $2,000 as a match in each year. The ultimate benefit at retirement is these accumualted contributions with interest.
Private pension plans: This phrase is used to distinguish private versus public sector plans or employer sponsored versus government. IBM's retirement plan is a private pension plan. The New Jersey State Employees' Retirement Plan is a public sector plan. Social Security is a government sponsored plan.
A personal pension plan is a retirement program like an IRA or a Keogh, that is not sponsored by an employer or government entity.
Pay as you go vs. Fully funded refers to the financial status of a defined benefit plan and how contributions are determined:
Pay as you go is a description of a contribution policy for a defined benefit plan. A plan that is funded on a "pay as you go" basis means that no money is invested for the plan, as retiree benefits become due the plan sponsor makes the payments directly. No assets are held so if the plan sponsor goes bankrupt, the retirees and any other participants who are due benefits stand in line with the other creditors. This is an illegal funding method for broad based private pension plans in the US.
Fully funded means that a pension plan has enough asset to totally pay off benefits earned to date; if no one earned any more benefits in the future, no additional money is expected to be needed to pay for current benefits. Retirees and other beneficiaries can have great confidence that even if the plan sponsor goes under, their benefits are safe.
Social Security is basically a pay as you go program. Historically, FICA taxes have been set to just about pay for current benefit payments to retirees. If a big influx of new retirees were to come in, the federal government has the ability to increase the FICA tax rate to cover the increased costs.
Since the early 1980's the FICA taxes have been set higher than current benefit payments in order to accumulate money to pay for the baby boomers when they retire. The idea was to put that money aside an use investment earnings on it to reduce the FICA tax increases that would have otherwise been necessary. The program has been no where near fully funded.
In fact, this is a sort of shell game. The only investments Social Security can buy with this money is US govt bonds. So Social Security is giving its extra assets to the government to run the country with the promise that the government will pay it back from future taxes. You are paying Higher FICA now so that you don't pay higher FICA later. But the higher FICA is funding lower taxes now which will have to rise later to fund the investments Social Security made with the higher FICA.
Question: How would my pension be affected and by what percentage ? I have completed 19 years of service and i want to resign. How will What will my pension benefit be worked out? How much / by what percentage will i be losing if I have not completed 20 years of service? Will i be majorly affected ?
Answer: Depends on who you work for. If they require 20 years you must stay on one more year.
Question: How does a retirement pension work, how is it funded? If you retire and your not working for a company anymore, how does the company make enough money to pay you a pension if your not doing any work for them anymore.
Answer: Normally there is a retirement plan the employer puts money in while you work. The plan has a trustee who invests the money. The trustee pays the benefits from the plan assets. They are government regulated and insured somewhat. You must read the plan to learn if you were vested (entitled to anything), when you can start drawing and how much.
Question: How is National Pension Scheme which is going to be launched in India in April 2009? How is the national pension scheme which is scheduled to launched in India in April 2009? If compared to Templeton India pension fund and UTI Pension Fund, how will it be?
Answer: pls clikon-
http://economictimes.indiatimes.com/Edit…
Question: What happens to your pension plan if the company you work for goes bankrupt and closes its doors? I know that the PBGC backs pension plans, but I don't understand the details very well. Can you still lose some of what you have saved?
Answer: Since it is a company asset, you will lose your pension plan.
Question: What happends when city pension fund boards invest millions of dollars in a risky business? Several city pension fund boards agreed in 2006 to invest $68 million in DV Urban Realty. Who and how does this affect? Is this legal or illegal? Is it ethical?
Answer: Is it legal? Yes. Is it ethical? Only if everybody that is affected by the risks understands what they are getting themselves into.
Perhaps the city pension fund board came to the conclusion that the only way that they could make this work was to invest in risky investments. It probably would not have worked any other way. So basically they rolled the dice and are hoping that they win. However there is a much bigger chance that they will loose. I don't think it is ethical since it is risky but business is business. It is a good thing for them that americans don't take education as seriously as they should or they might not have been able to pull this one off.
Question: Why do insurance companies buy pension funds from companies? How do they make money taking the pension plan? Why do insurance companies buy pension funds from companies? How do they make money taking the pension plan off the company's hand?
Does the company offering the pension plan pay anything to the insurance company to take the liability off their hands?
Answer: Maybe the insurance company insures the pension plan, and when it looses money, they collect on it and right off the lose to the tax people.
Question: How much is the pension of a government worker that has worked 30 years monthly allotment anybody know? curious how much a government employee on a pension makes every month?
american government, or state?
Just a ballpark figure.
Answer: Which government?
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