Clawback
Clawback: A practice whereby
a pension scheme will offset an amount equivalent to
the state pension against a target pension so as to
arrive at the amount payable by the scheme. If commission
is paid to an intermediary by a financial institution
for the introduction of business and this does not stay
in force for a certain pre-determined period a part
of the commission may be repayable to the institution.
This is known as 'clawback'. The practice is more prevalent
among insurance companies..
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