It would use a different measurement approach than final average pay and retiree medical plans, a change 50 percent of respondents find inappropriate and 38 percent support.
What does FAP stand for?
FAP stands for Final Average Pay (often used to determine pension benefits)
This definition appears very rarely and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of FAP
We have 257 other meanings of FAP in our Acronym Attic
- Fijian Association Party
- File Access Protocol
- File Assignment Problem (aka File Allocation Problem)
- Filter, Air Coolpad
- Filtre à Particule (French: Particle Filter)
- Final Anthropic Principle
- Final Approach Point
- Final Approved Plan
- Final Approved Program
- Final Assault Point (military term)
Samples in periodicals archive:
The defined benefit portion of the plan must provide a benefit that is at least equal to 1 percent of each employee's final average pay times years of service, with a maximum required benefit of 20 percent of final average pay.
In the past, he says, SERPs were generally calculated as a multiple of final average pay times years of service.
After 20 years, a participant had a right to retirement income of 35 percent of final average pay at age 65 (less a small portion of his Social Security).
A well-designed Retirement Shares Plan will provide retirement income comparable to that of a final average pay defined benefit plan, while also offering the retiree the potential of a growing income during retirement.
If a younger employee accrues an annuity starting at age 65 of one percent of final average pay, the older employee generally must also accrue as much or more.
Most local plans provide that final average pay will be determined as of the day an employee leaves the company sponsoring the plan, not the group of companies making up the multinational corporation.
If an employer does not provide grandfathering provisions or other provisions such as those mentioned above for its long-term employees, some plan participants may earn a smaller retirement benefit for future years of service under the cash balance plan than they would have earned under the final average pay plan.