Retirement Services

Defined Benefit Plans

With the attractiveness of benefits being defined in advance for eligible employees, this tax-deferred company retirement plan places the investment risk on the employer.

  • Advantages
    • Annual benefit at retirement can be as high as 100% of highest three-year-average pay, up to $220,000
    • Provides guaranteed annuity payments for life
  • Eligibility
    • All taxable businesses, government entities and tax-exempt organizations may establish a Defined Benefit Plan
    • Any employee with 1,000 hours of service within one year and who is age 21 or older must be covered; exclusions are permitted for certain employees
  • Maximum total plan contribution that the employer may deduct

    Contribution is limited to amount necessary to fund future benefits (maximum eligible pay per participant is $275,000)

  • Maximum annual allocation to participant’s account

    No individual accounts

  • Maximum annual participant deferral (cannot exceed 100% of pay)

    No participant contributions allowed

  • Required employer contribution

    Contributions based on anticipated payouts during retirement and actuarial assumptions

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