Providing cost certainty to
target benefit plan sponsors appeals to them as well as to union participants.
Types Of Qualifier Retirement Plans Defined Contribution Defined Benefit page page Pension Money Purchase 390 Defined Benefit 391 Pension Plan Pension Plan
Target Benefit Plan 390 Cash Balance 392 Pension Plan 412(i) Plan 393 Profit Profit Sharing Plan 394 n/a Sharing 401(k) Plan 395 Stock Bonus Plan 397 ESOP 398 Age-Weighted Profit 399 Sharing Plan Saving/Thrift Plan 400
If a
target benefit plan contains a target formula, such as 30 percent of compensation, that is identical to the benefit formula in a defined benefit plan,
A
target benefit plan is a type of money purchase plan (see above).
One was a 401 (K) and the other was a
target benefit plan.
Pension Innovation for Canadians: The
Target Benefit Plan," (the Federal Consultation Paper.
Types Of Qualified Retirement Plans * Defined Contribution Defined Benefit Pension Money Purchase Pension Defined Benefit Pension Plan [478] Plan [401]
Target Benefit Plan [553] Cash Balance Pension Plan [370] 412 (i) Plan [286] Profit Profit Sharing Plan [501] Sharing 401(k) Plan [278] Stock Bonus Plan [548] n/a ESOP [413] Age-Weighted Profit Sharing Plan [363] Savings/Thrift Plan [531] * Numbers in brackets [] indicate page numbers.
Types Of Qualified Retirement Plans Defined Contribution Defined Benefit page page Pension Money Purchase 390 Defined Benefit 391 Pension Plan Pension Plan
Target Benefit Plan 390 Cash Balance 392 Pension Plan 412(i) Plan 393 page Profit Profit Sharing Plan 394 Sharing 401(k) Plan 395 Stock Bonus Plan 397 ESOP 398 n/a Age-Weighted Profit 399 Sharing Plan Saving/Thrift Plan 400 Qualified Plans Checklist Element Limitations Eligibility to Also referred to as "participation participate requirements," these are the minimum frequently.
This enables them to
target benefit plan dollars to achieve the greatest return on investment.
With a
target benefit plan there is no pension guarantee - the pension is whatever the contribution can support and the fair value of the pension is the amount contributed to the pension plan.
The
target benefit plan is essentially a hybrid plan.
The
target benefit plan is a money purchase plan where the contributions are age-weighted.
