Qualified pension plan

Retirement plan that conforms to the regulations contained in Section 401(a) of the Internal Revenue Code. It is established and maintained by an employer to provide for benefits to employees over a period of years after retirement. Qualified plans are approved by the Internal Revenue Service. The employer’s contributions are considered a deduction in determining the employer’s taxable income, not considered as employee earnings, and not taxable to the employee. Earnings of the pension plan are not subject to income tax.

Quality

1. For health plans, the general standard or grade of how well a plan keeps its members healthy or treats them when they are sick. Good-quality health care means doing the right thing at the right time, in the right way, for the right person, and getting the best possible results. 2. As defined by the Institute of Medicine, the degree to which health services for individuals and populations increase the likelihood of desired outcomes and are consistent with current professional knowledge. 3. Highest degree to which a product or service meets needs and expectations.