Definition of eligible termination payment in English:

eligible termination payment


  • A lump sum, especially one received by a departing employee, which may be paid into an investment fund.

    ‘in this case, the amount is treated as an eligible termination payment’
    • ‘The eligible termination payment came in cash and that stayed with him, and did not go across to the family company.’
    • ‘The fact that the options and the eligible termination payment were dealt with differently hardly seems relevant.’
    • ‘It was a taxed superannuation fund which then gave rise to the benefits by way of deduction and rebate upon the payment of eligible termination payments.’
    • ‘An eligible termination payment, that is the lump sum payment, is taxed at 15 per cent.’
    • ‘If one commutes the pension to a lump sum, it is in general an eligible termination payment.’
    • ‘The government broadened the payroll tax base by removing the concessions on fringe benefits and eligible termination payments.’
    • ‘Withdrawals of capital are permitted and are taxed as eligible termination payments.’
    • ‘A fund that can accept eligible termination payments and that is eligible for the same concessional tax treatment as a superannuation fund.’
    • ‘Lump sum payments made to the former pilots under a "loss of licence insurance" scheme if they lost their pilot's licences for medical reasons were assessable to the pilots as eligible termination payments.’
    • ‘A type of fund into which lump sum eligible termination payments are deposited or 'rolled over' upon a person's retirement, resignation, or retrenchment.’