‘V-Z’ Retirement Terms

Variable Benefit Plan: "A type of retirement plan in which the payout changes depending on how well the plan's investments perform. Variable benefit plans, also called defined contribution plans, allow the plan holder to manage his or her own account. By contrast, a defined benefit plan provides the plan holder with predetermined payments upon retirement that do not change and which are based on an eligibility formula rather than on investment returns. "

Vested Benefit Obligation (VBO): "The actuarial present value of pension plan benefits belonging to employees of an organization. The vested benefit obligation (VBO) is one measure of a pension fund's liability. The VBO only considers benefits that have vested in an employee, as opposed to the accumulated benefit obligation (ABO), which represents the present value of any benefits, whether vested or not."

Vested Interest: "1. The lawful right of an individual or entity to gain access to tangible or intangible property now or in the future. A vested interest is an entitled benefit, which can be conveyed to a separate party. There is usually a vesting period before the claimant can gain access to the asset or property. Due to the right of ownership, the benefit can not be taken away i.e. the vested funds are not contingent on any action or inaction. 
2. A financial or personal stake one entity has in an action, separate entity or commitment, with the expectation of realized benefits in the present or the future."

Volume Weighted Average Price (VWAP): "A trading benchmark used especially in pension plans. VWAP is calculated by adding up the dollars traded for every transaction (price multiplied by number of shares traded) and then dividing by the total shares traded for the day." 

Voluntary Bankruptcy: "A type of bankruptcy where an insolvent debtor brings the petition to a court to declare bankruptcy because he or she (in the case of an individual) or it (in the case of a business entity) is unable to pay off debts. The bankruptcy is intended to create an orderly and equitable settlement of the debtor's obligations."

Voluntary Employees Beneficiary Association Plan (VEBA): "A tax-free post-retirement medical expense account used by retirees and their eligible dependents to pay for any eligible medical expenses. The plan is funded by the amount of unused sick leave that an employee has at the time of retirement, which is contributed by the employer into the plan. The benefit of this plan is the amount of sick leave left at retirement is paid out in full to the plan and is not subject to tax, which would reduce the amount one would receive."

Voluntary Trust: "A type of living trust that is created during the lifetime of the trustor, and is also known as an inter vivos trust. In a voluntary trust, the trustor retains legal title of the gift transferred to the beneficiary, even though the beneficiary has actual title and possession. "

Waiver of Notice: "A legal document that waives the right to formal notification. It may be used in a number of situations, such as during the process of probating a will, or when a corporate Board of Directors needs to hold an emergency meeting. The use of a waiver of notice is commonly to allow legal proceedings to be more timely and efficient."

Wealth Management: "A professional service which is the combination of financial/investment advice, accounting/tax services, and legal/estate planning for one fee."

Wealth Tax: "It is a tax based on the market value of assets that are owned. These assets include, but are not limited to, cash, bank deposits, shares, fixed assets, private cars, assessed value of real property, pension plans, money funds, owner occupied housing and trusts. An ad valorem tax on real estate and an intangible tax on financial assets are both examples of a wealth tax. Although many developed countries choose to tax wealth, the United States has generally favored taxing income."

Welfare and Pension Plans Disclosure Act (WPPDA): "A late-1950s law that gave the U.S. Department of Labor regulatory authority over employee benefits plans for the first time. The Welfare and Pension Plans Disclosure Act (WPPDA) mandated that employers and labor unions provide plan descriptions and financial reports to the government, and was intended to make plan sponsors more accountable to participants and beneficiaries for the financial health of the plans."

Widely Held Fixed Investment Trust (WHFIT): "A fixed investment trust that is held by at least one third party, or middleman, rather than the owner of the trust. A widely held fixed investment trust (WHFIT) is set up by an investor or group of investors who create a portfolio of investments that are generally low risk/return. The investors then sell shares of the trust to different individuals. Holders of the trust are paid dividends and interest at regular intervals."

Widow's Allowance: "An allowance of funds and/or personal property received by a widow after her husband's death to meet her immediate requirements. The amount of the allowance is decided by statute or court and is meant to protect the widow and family of a deceased person from financial hardship during administration of the deceased's estate."

Will: "A legally enforceable declaration of how a person wishes his or her property to be distributed after death. In a will, a person can also recommend a guardian for his or her children. 
Also known as a "will and testament"."

Will Variation: "A provision that allows a surviving spouse and/or children to contest a will that does not make adequate provision for their maintenance and support. In Canadian estate law, a legally married spouse, separated spouse, a common law spouse (in certain instances and where the two people are cohabiting in a marriage-like relationship) and the children of a decedent have the right to contest a will if they feel they have not been provided for in the manner in which they had reasonably expected. If the challenge is upheld by a court, the will may be rewritten to provide adequate support for the involved parties."

With Benefit of Survivorship: "A form of joint tenancy ownership where property passes to the survivor(s) when one of the joint members dies, rather than becoming part of the decedent's estate. With benefit of survivorship is a legally defined situation where two or more individuals jointly own property, such as a home, and where the ownership is retained by other joint owners in the event that one of the owners dies. Joint tenants with right of survivorship (JTWROS) is an example of a type of joint tenancy arrangement where all survivors share the assets upon the death of one of the tenants."

Withdrawal Benefits: "The rights of an employee who has a qualified pension plan to cash-out any accumulated benefits upon leaving an employer. Withdrawal benefits under a defined contribution plan may allow the employee to have immediate rights to any contributions, plus any earnings on those contributions. The employee may not be entitled to receive any employer contributions unless he or she is vested. Under a defined benefit plan, most likely the benefits will stay with the retirement plan until you become eligible to receive them."

Withdrawal Credits, Pension Plan: "The rights of an employee who has a qualified pension plan to cash out any accumulated benefits upon leaving an employer. Under a pension plan, through withdrawal credits, the employee may have immediate rights to any contributions plus any earnings on those contributions. The employee may not be entitled to receive any employer contributions unless he or she is vested. The terms of vesting depend on the employer; however, maximum limits are set by legal statute. "

Withdrawal Penalty: "Refers to any penalty incurred by an individual for early withdrawal from an account that is either "locked in" for a stated period, as in a time deposit at a financial institution, or where such withdrawals are subject to penalties by law, such as from an IRA. The penalty can be either in the form of forfeiture of interest or an actual dollar amount."

Year's Maximum Pensionable Earnings (YMPE): "A figure set each year by the Canadian government determining the maximum amount on which to base contributions to the Canada or Quebec Pension Plan (C/QPP). The YMPE specifies the earnings amount that can be used in calculating pension contributions for each year."

Years Certain Annuity: "An insurance product that pays the holder a monthly income for a specified number of years. A years certain annuity is similar to other annuities because they are generally used to provide a steady income during retirement, but differ by providing income for a predetermined amount of time regardless of how long the annuitant lives. This differs from a life annuity which provides payouts for the remainder of the annuitant's life and, in certain cases, the life of the annuitant's spouse."