Defined Benefit Plans

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Pension Benefit Guaranty Corporation - The Pension Benefit Guaranty Corporation (or PBGC) is an independent agency of the United States government created by the Employee Retirement Income Security Act of 1974 (ERISA) to encourage the continuation and maintenance of voluntary private pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum. Defined benefit pension plans promise to pay a specified monthly benefit at retirement, commonly based on salary and years on the job.

Cash balance plan - A Cash balance plan is a defined benefit retirement plan that maintains hypothetical individual employee accounts like a defined contribution plan. The hypotheticality of the individual accounts was crucial in the early adoption of such plans because it enabled conversion of traditional plans without declaring a plan termination.

Plan termination - For ERISA defined benefit pension plans, the plan may be terminated by the []employer if the employer can demonstrate that it is fully funded and can purchase annuity contracts for the accrued benefits for all its employees or it may be terminated by the PBGC ( ...

Target Benefit - A Target Benefit plan is a defined contribution plan designed to provide benefits that would match a defined benefit plan at normal retirement age. For example, if the defined benefit plan being Targeted has a 1.


Suggested Web Sites

The Nyhart Company - An employee benefit and actuarial firm providing health care administration, defined benefit plans, defined contribution plans and section 125 cafeteria plans.

The Recordkeeper Ltd. - Canadian firm - Third party administration of defined benefit pension plans and defined contribution plans.

Pension Benefit Guaranty Corporation (PBGC) - Official site for agency that protects the pensions of workers and retirees in private employers' defined benefit retirement plans. Information on agency programs, updates of current activities, forms, retirement planning guidance, and publications.

Source: BazSites.com

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