This rule requires coordination of post-retirement medical benefits provided to key employees with their defined-contribution plan
Richman and other critics of the current pension system say it is too expensive and creates a costly drag on government budgets, while a defined-contribution plan
would be self-funding.
And a shot was fired across the bow of the critics of defined-contribution plans
who say that major employers wouldn't dare try it: The Pacific Business Group on Health announced recently that its members' 4 million employees would be offered a defined-contribution plan
next year, in some cases exclusively
Thirty-two percent of the respondents had replaced a defined-benefit plan with a defined-contribution plan
within the past five years.
Due to these restrictions, the introduction of multitier plans may be the available approach; with this structure, a defined-contribution plan
is the only option available to new employees, and existing employees have the option of staying under the old plan or moving to the new arrangement.
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
The award adopts the new enhanced defined-contribution pension plan for new employees and provides current employees the choice -- the same as for some other work groups and management -- to move into the same enhanced defined-contribution plan
or remain in their existing defined-benefit plan.
401(k) plans can make distributions to participants, even if the client company establishes its own successor defined-contribution plan
More choices are a key advantage of a defined-contribution plan
, according to "Individual Choice Model of Health Insurance," a report prepared by the American Association of Health Plans, If employees purchase their own policies, they can choose what types of coverage they want, from indemnity plans to health maintenance organizations.
According to Salisbury's work at EBRI, companies with fewer than 2,500 employees tend in practice to rely on a defined-contribution plan
, often a 401 (k), as the primar or only retirement plan.
com, Inc, a federally registered investment advisor, is the pioneer in offering online investment advice to defined-contribution plan
participants, and remains a leading provider in this field.
411(d)-2(b)(1) do not include the creation of a potential reversion as a factor in determining whether a defined-contribution plan
has been partially terminated.