What does Salary Reduction Plan mean? Read on to discover the definition & meaning of the term Salary Reduction Plan - to help you better understand the language used in insurance policies.
Salary Reduction Plan
A salary reduction plan is a pension plan that lets employees draw from their salaries to make contributions to their retirement accounts. These contributions are typically tax deferred, which can make them very appealing to employees. Along with insurance benefits, these kinds of pension plans are a common perk that employers provide for their workers.
We hope the you have a better understanding of the meaning of Salary Reduction Plan.