Some employers seem to have concluded that the administrative hassles of sponsoring a pension plan are so large that the only way they can win is by not offering a defined-benefit plan
at all," he said.
assets were allocated 62% to equity, 28% to fixed income and 10% to other investments.
With a defined-benefit plan
, the employer contributes and deducts an amount that, together with accumulated contributions and expected income, will produce the defined retirement benefit.
company with some operations in country C did not exclude nonresident aliens (NRAs) from its qualified defined-benefit plan
Beginning next January 1, it will freeze accrued pension benefits for some 42,000 managers under the existing defined-benefit plan
and begin a shift to defined-contribution (DC) plans, such as 401(k)s.
411(d)-2(b)(1) provides that whether or not a partial termination of a defined-contribution or defined-benefit plan
has occurred depends on the facts and circumstances.
Allowable deductions are also increased for employers that maintain both a defined-contribution and defined-benefit plan
The measure is certain to face stiff resistance from members of the state's powerful public employee unions, who feel the current pension system, called a defined-benefit plan
, provides better benefits than Richman's defined-contribution plan.
Boston, has launched a full-service defined-benefit plan
for older small-business owners who haven't planned for their own retirements or their employees'.
In 1985, nearly nine out of 10 Fortune 100 companies offered a traditional defined-benefit plan
The defined-benefit plan
economics are shifting and will afford employers the opportunity for lower funding costs, thereby positioning [them] to once again become one of the most cost-effective methods of providing adequate retirement income," Rausser said.
But a defined-benefit plan
is more efficient than most people's 401(k)s because it takes advantage of economies of scale that permit professional management.