What Is a Pension Plan? A pension plan is an employee benefit that commits the employer to make regular contributions to a pool of money that is set aside in order to fund payments made to eligible employees after they retire. Traditional pension plans have become increasingly rare in the U.S. private section. They have
What Was the Pension Protection Act of 2006? The Pension Protection Act of 2006 (PPA) made significant reforms to U.S. pension plan laws and regulations. Signed into law by President George W. Bush on Aug. 17, 2006, the PPA sought to protect retirement accounts and hold companies that underfunded existing pension accounts accountable. The law
What Is a Payment Protection Plan? A payment protection plan is an optional service offered by some credit card companies and lenders that lets a customer stop making minimum monthly payments on a loan or credit card balance during a period of involuntary unemployment or disability. It may also cancel the balance owed if the
What Is a Payment Shock? A payment shock refers to a dramatic increase in an individual’s debts and liabilities that may cause them to default on their financial obligations. Put simply, payment shock occurs when, rather suddenly, someone is obligated to pay more in monthly debt than they can afford from their income. This concept
What Is a Payoff Statement? A payoff statement is a statement prepared by a lender providing a payoff amount for prepayment on a mortgage or other loan. A payoff statement or a mortgage payoff letter will typically show the balance you must pay in order to close your loan. It may also include additional details
What Is a Payout? Payouts refer to the expected financial returns or monetary disbursements from investments or annuities. A payout may be expressed on an overall or periodic basis and as either a percentage of the investment’s cost or in a real dollar amount. A payout can also refer to the period in which an investment
What Is the Payout Phase? The payout phase in an annuity is the phase when payments are made to the annuitant. These usually distribute on a monthly basis and last for the lifetime of the annuitant. An annuity is a financial product that pays an investor or recipient a stream of payments at some point
What Is PayPal? PayPal is a payment platform with a website and a phone app that enables payments between parties through online money transfers. PayPal customers create an account and connect it to a checking account, a credit card, or both. Once identification and proof of funds are confirmed, users can send or receive payments
What Is Payroll? Payroll is the compensation a business must pay to its employees for a set period or on a given date. It is usually managed by the accounting or human resources department of a company. Small-business payrolls may be handled directly by the owner or an associate. Increasingly, payroll is outsourced to specialized
What Is a Payroll Card? A payroll card is a prepaid card on which an employer loads an employee’s wages or salary each payday. Payroll cards are an alternative to direct deposit or paper checks. These cards are manufactured by major payment processors, such as Visa, allowing workers to use them anywhere electronic payment cards
