An annuity under which payments made to retirees or beneficiaries from the fund vary with the changes in the investment experience of the fund.
Variable life (insurance)
A life insurance policy that offers level premiums but variable death benefits. Premiums are invested by the policyholder, and investment performance determines the benefits level above a guaranteed minimum benefits level.
Variable timing restricted performance shares
Restricted performance shares that are earned when the key employee achieves specified performance objectives.
Variable universal life insurance (flexible life)
A type of insurance policy that combines features of universal and variable life. It offers a guaranteed death benefit, flexibility in the timing and amount of premiums, and a choice of investment funds.
Benefits accrued by a plan participant that are nonforfeitable under the plan’s vesting schedule; they are not contingent on a participant’s remaining in the employer’s service until retirement. ERISA requires vesting for all qualified plans.
Present value of the nonforfeitable immediate or deferred benefits that are available at normal retirement age to plan participants.
A benefits standard that gives the employee the right to all benefits accrued regardless of continued service with the employer. All employee contributions are always fully vested; employer contributions are vested according to minimum schedules outlined in ERISA.
A contributory benefit plan in which employees cover all costs and the employer acts only as an agent of the employees to organize and administer the plan.
Participant contributions to a pension plan that are not required for participation in the plan.
Voluntary employee beneficiary association (VEBA)
Under Section 501(c)(9) of the Internal Revenue Code, a tax-exempt organization providing for the payment of life, sickness, accident, or other benefits to the members or their dependents or designated beneficiaries. Employees may make tax-deductible contributions. Participation must be voluntary, and no part of the earnings may inure to the benefit of a private shareholder.
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