Unbundled services in a defined benefit plan mean the various functions are performed by separate entities, which presents advantages for employers.
Unbundled Services in a Defined Benefit Plan
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Defined Benefit Plans
Defined benefit plans, also known as pensions, enhance employer retirement plan benefit packages by providing specific benefits to eligible participants upon their retirement date. Defined benefit plans are attractive to potential employees due to lifetime benefit payments, clear contribution rules, and low financial risk for non-contributing employees. Despite sounding straightforward, defined benefit plans carry a unique set of considerations and requirements for employers and plan administrators. Defined benefit plans almost always obtain funds entirely from employers, meaning employers carry the majority of investment risk, not plan beneficiaries. Defined benefit plans must prove financial stability on a yearly basis for plan funding and reporting purposes. Reduce your defined benefit plan risk by researching applicable defined benefit plan risk articles on the Watkins Ross blog. Our Watkins Ross retirement plan team has the experience and knowledge to design your defined benefit plans to fit your business’s goals; connect with us here to learn more.
Defined Benefit Plan Termination Procedure
There are many reasons a company may terminate the plan, but specific steps must be followed for the defined benefit plan termination procedure.
Reducing Risk in Your Pension Plan: Lump Sum Payments to Former Employees
Have you considered offering lump sums to former employee participants as a step toward reducing pension risk and expense?
Protect Your Qualified Plan From RMD Failures
Qualified retirement plans are subject to Required Minimum Distribution (RMD) rules. It’s important to protect your qualified plan from RMD failures.
Attribution Rules – The Family Tree
You don’t get to choose your family, and the same holds true with family attribution rules; but a company’s ownership is critical for accurate testing.
Long Awaited but Never Forgotten… New Mortality Rates Apply in 2018
The IRS has posted final regulations requiring new mortality rates for single-employer defined benefit plans to apply in 2018.
Defined Benefit: Fast Facts & Planning Tips
The National Retirement Planning Coalition has designated April 11-15 as the 2016 National Retirement Planning week. In celebration, each day this week Watkins Ross will share some fast facts and planning tips on the various types of retirement plans we service....
A Case for Defined Benefit Plans – PART 1
Traditional pension plans, or defined benefit plans, are the original backbone of the corporate pension system. Retired employees who have worked for a company with one of these plans are enjoying benefits provided well into old age. Middle aged employees...
PBGC Premiums Will Increase Again in 2016, and Then…
The PBGC has announced the 2016 premium rates for defined benefit pension plans. The flat rate premium is $64 per participant for single employer defined benefit pension plans and $27 for multi-employer plans. We knew that the variable rate premium (per $1,000 of...
Restriction of Lump Sum Payments from Defined Benefit Plans
Single employer defined benefit pension plans that have a lump sum distribution option must keep the plan at least 80% funded in order to continue to offer the full lump sum payment to their participants. This requirement was added by the Pension Protection Act...