What is the term for a plan that allows benefits earned at one employer to continue to be accrued with another employer?

What is the term for a plan that allows benefits earned at one employer to continue to be accrued with another employer?

• A. Fixed plan
• B. Non-portable plan
• C. Portable plan
• D. Retirement continuation plan

Answer: (C)

The term "portable plan" refers to a retirement or benefits plan that allows an employee to transfer or continue accruing benefits when changing employers. This feature is particularly important in today's workforce, where individuals frequently move from one job to another. A portable plan typically ensures that an employee does not lose their retirement savings or accrued benefits due to a job change, allowing for an easier transition and continuity of benefits accumulation. This can include options such as transferring retirement accounts or the ability to carry benefits like health insurance coverage or pension rights from one employer to another. The concept of portability supports employees in maintaining their financial security and retirement planning, regardless of their employment status. Such plans are increasingly becoming a standard expectation among employees, as they provide flexibility and support in career transitions.

The term "portable plan" refers to a retirement or benefits plan that allows an employee to transfer or continue accruing benefits when changing employers. This feature is particularly important in today's workforce, where individuals frequently move from one job to another.

A portable plan typically ensures that an employee does not lose their retirement savings or accrued benefits due to a job change, allowing for an easier transition and continuity of benefits accumulation. This can include options such as transferring retirement accounts or the ability to carry benefits like health insurance coverage or pension rights from one employer to another.

The concept of portability supports employees in maintaining their financial security and retirement planning, regardless of their employment status. Such plans are increasingly becoming a standard expectation among employees, as they provide flexibility and support in career transitions.