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.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Salary Reduction Plan. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: