Principles of Risk Management and Insurance, 13th Edition

Chapter 17 Employee Benefits: Retirement Plans

“Retirement at age 65 is ridiculous. When I was 65, I still had pimples.”

George Burns

“When some fellers decide to retire, nobody knows the difference.”

Kin Hubbard

Learning Objectives

After studying this chapter, you should be able to

• Explain the basic features of private retirement plans, including:

  • – Minimum age and service requirements

  • – Retirement ages

  • – Vesting rules

• Distinguish between defined-contribution and defined-benefit retirement plans.

• Describe the basic characteristics of Section 401(k) plans.

• Explain the major features of profit-sharing plans.

• Identify the major features of SIMPLE retirement plans for small employers.

Brandon, age 27, is a marketing analyst who is employed by ...