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Why is it legal for corporations to discharge defined pension plans yet continue to stay in business?
Because your congressmen wrote the law that way.
I'm not sure your question is fully developed or correct in it's supposition: Cos may end a defined benefit plan by freezing it at the vested amount it is. Like any other portion of your pay package, it too is subject to prospective change.
They cannot eliminate the vested and already earned portion of any qualified plan. Even in bankruptcy (or discontinuation of a business), those plans continue albeit they may be turned over to the PBGC. (Pension Benefit Guarantee Corp...a quasi governmental agency). In those cases, one of the first claims settled is the amount the PBGC needs (under complex actuary calculations) to get to fund the future benefits. (It is true that the PBGC has some guidelines that may limit how much can be paid to something like 7K a month...so an exceptionally rich plan may be limited to paying highly paid people a smaller amount).
Non qualified plans are basically creditors promised a payment like anyone else.
What else can I help you with?
What is the coefficient of discharge?
Coefficient of discharge of an ideal liquid can be defined as a ratio of actual discharge and theoretical discharge. where, Cofficient of discharge = Actual Discharge/ Theoretical discharge.
How many types of business are there?
There are many types of business that are defined by different legal systems in different countries. They include partnerships,sole traders, limited liability company,cooperatives and corporations.
What is The organizational form defined as a business that is legally considered an entity separate from its owners and is liable for its own debts is a?
The organizational form defined as a business that is legally considered an entity separate from its owners and is liable for its own debts is a corporation. This structure provides limited liability protection to its shareholders, meaning their personal assets are generally not at risk for the corporation's debts. Corporations can raise capital more easily through the sale of stock, and they continue to exist independently of the owners' involvement.
What is defined in the corporate strategy?
Corporate strategy is when the direction of a corporation cooperates with its various business operations work to achieve particular goals. Corporations prefer this strategy over others.
Which is defined as monetary assistance by the government to financially threatened corporations?
bailout
What is a corporation explained in layman's terms?
A business that is recognized by a state and is given certain rights? -apex (:
Why corporation defined as an artificial being?
Corporations are considered artificial beings because they are created and recognized as distinct legal entities separate from their owners or shareholders. This distinction allows corporations to enter into contracts, sue and be sued, own property, and conduct business activities independently of the individuals who established them.
Conditional discharge is defined as what by law?
A conditional discharge can be defined as a sentence that is passed to a defendant where they are not convicted of a crime as long as certain conditions are met. If these conditions are not met the defendant will have to be re-sentenced.
WHY are corporations defined as entities?
because they have legal identity separate from those of their owners.
Which term is defined as monetary assistance by the government to financially threatened corporations?
bailout
Why are corporations defined entities?
because they have legal identity separate from those of their owners.
What percentage of the American workforce works for large corporations?
Approximately 48% of the American workforce is employed by large corporations. Large corporations are defined as companies with more than 500 employees.
