An annuity in which payments are designated to begin at a later date, as opposed to one where payments begin upon purchase. See Annuity .
Insurance Encyclopedia
Deferred annuity purchase
See: Age 75 Rule.
Deferred care
Needed health care (medical or dental) that is delayed because the patient does not have insurance or is not able to pay for services.
Deferred compensation
Rescheduling of an employee’s compensation to some future age or date. The employee agrees to receive payment at a later date for work performed before that date, for the purpose of retirement only or to provide a death benefit to the beneficiary of a pension plan.
Deferred compensation (Pensions)
A qualified or non-qualified plan wherein a key employee is able to defer current payments until death, disability, or retirement. This must be agreed upon with the employer in a written statement.
deferred compensation administrator (DCA)
Type of company that provides administrative and other services through a variety of situations such as retirement planning administration, third-party administration, self-insured plans, compensation planning, salary survey administration, and workers’ compensation claims administration.
Deferred compensation plan
Type of plan created by an employer that gives benefits to employees at a later date or after their retirement. The money is not taxed until the later date, usually at retirement, when income is reduced and the deferred funds can then be taxed at a lower rate.
Deferred compensation plan (Pensions)
Deferment of a fraction of an executive’s salary to supplement retirement income. The employer and employee must write an agreement stating the length of the deferral period, per the IRS. This plan is used to encourage employee loyalty.
Deferred group annuity
Type of group annuity contract that provides for the purchase each year of a paid-up deferred annuity for each member of the group, the total amount received by the member at retirement being the sum of these deferred annuities.
Deferred group annuity (Annuity)
A group annuity contract that allows for the annual purchase of a paid-up, deferred annuity for each one in the group. The total of the annuity payments usually begins at retirement.