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deposit administration plan (DAP)

A deposit administration plan is a pension plan administered by a life insurance company where pension funds accumulate in a master group annuity policy until a participant retires.

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Additional Information

As plan members retire, individual annuity policies are purchased with money from the fund. Also known as deposit administration contract and group deposit administration annuity.

Related Terms

A pension is an arrangement in which employees are provided with an income during retirement,...