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Pay-as-you-go Pension Plan
A pay-as-you-go pension plan (also called a "pre-funded pension plan") is a retirement scheme in which a contributor can either have a regular contribution deducted from each paycheck or make a lump-sum contribution to a retirement fund. With such a plan, the contributor decides how much to contribute to the fund and chooses how it is invested. Upon retirement, the contributor can have the fund balance paid in a lump sum, in monthly installments, or in a combination of the two. Difference Private pay-as-you-go pension plans are not to be confused with pay-as-you-go pension systems. The latter term refers to state pension systems funded by contributions from current workers (rather than by individual past contributions from current beneficiaries). The underlying pay-as-you-go (PAYG or PAYGO) principle is applied in social insurance systems across the world. References {{Reflist Retirement plans in the United States ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
PAYGO
PAYGO (Pay As You GO) is the practice of financing expenditures with Collective investment scheme, funds that are currently available rather than borrowed. Budgeting The PAYGO compels new spending or tax changes not to add to the federal debt. Not to be confused with pay-as-you-go financing, which is when a government saves up money to fund a specific project. Under the PAYGO rules, a new proposal must either be "budget neutral" or offset with savings derived from existing funds. The goal of this is to require those in control of the budget to engage in the diligence of prioritizing expenses and exercising fiscal restraint. An important example of such a system is the use of PAYGO in both the statutes of the U.S. Government and the rules in the U.S. Congress. First enacted as part of the Budget Enforcement Act of 1990 (which was incorporated as Title XIII of the Omnibus Budget Reconciliation Act of 1990), PAYGO required all increases in direct spending or revenue decreases to be o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
