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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.