What does Pension Equity Plan mean? Read on to discover the definition & meaning of the term Pension Equity Plan - to help you better understand the language used in insurance policies.
Pension Equity Plan
A pension equity plan (PEP) is a retirement benefit in which a percentage of an employee's average salary is multiplied by the number of years in service. This kind of plan serves the reality of workers leaving one job for another instead of staying in one workplace for life, since what they finally receive after working is a lump-sum payment.
We hope the you have a better understanding of the meaning of Pension Equity Plan.