Annuity
A benefit paid in the form of a series of period payments usually monthly. The payments must be made at least annually and can be variable or fixed.

Defined Benefit Plan
A qualified retirement plan that specifies the total amount of money an employee will receive at retirement.

Defined Contribution Plan
A qualified retirement plan that specifies the amount of money that will be contributed to an employee's account each year.

Employee Retirement Income Security Act of 1974 (ERISA)
The law that governs the operation of most corporate pension and benefit plans.

Fiduciary
A person or entity who: (1) exercises any discretionary authority or control over the management of a plan or disposition of its assets; (2) provides investment advice for a fee or other compensation; or (3) has discretionary authority or responsibility over the administration of the plan.

401(k) Plan
A tax-deferred defined contribution retirement plan offered by an employer.

Pension Plan
A contract between an individual and an employer, union, or government entity that provides for the distribution of pension benefits at retirement.

Pension Protection Act of 2006 (PPA)
The most comprehensive overhaul of qualified retirement plan laws since the passage of ERISA in 1974.

Trustee
An employee or committee of an employer, or bank or trust company that has exclusive authority and discretion to manage and control assets of a plan.


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