A profit sharing plan is a qualified, defined contribution plan featuring a flexible employer contribution
Now unions, including the NSWNA, are gearing up to campaign for an increase to the employer contribution
Eckler Partners recommended that the pensions committee, the national church group that oversees operations of the pension office, based in Toronto, consider further increasing the employer contribution
rate in 2007.
The act permits plan sponsor to deduct employee 401(k) elective deferrals in addition to the employer contribution
, effective for tax years beginning after December 31, 2001 (see the Exhibit).
* A nonelective employer contribution
of at least 3 percent of compensation for each eligible employee who isn't highly compensated under the plan.
In addition, although the employer contribution
(i.e., 80 percent of the cost of an average plan) would remain tax-free, there is no incentive to provide more costly plans, so the $46 billion currently lost to the unlimited tax-break is capped, saving an estimated $11.2 billion per year.
The survey of 284 schemes showed huge variations, with some still in surplus and requiring no employer contribution
while other firms had raised their contributions by 100pc.
The survey of 559 companies showed half were totally opposed to the TUC's call for a minimum employer contribution
to pension schemes of ten per cent of earnings.
Because of the small number of participants affected relative to the total and the small monetary amount relative to the total employer contribution
, the failure was deemed insignificant and eligible for correction.
for Flagstar is 25% on first 6% of employee contributions and an additional 75% on first $500 per year of first 6%; for Denny's, 100% on first 3%.
The inferred employer contribution
to fund the benefit was $9,950 per year.
Plans designed before any compensation limits were imposed frequently gave everyone an employer contribution
equal to the same percentage of pay.