Defined Benefit Plan
A defined benefit plan is a company-sponsored retirement plan where employee benefits are available based on a formula using factors like salary history and duration of employment. Portfolio management and investment direction are usually controlled by the company. There are also guidelines on when and how you can withdraw these funds without penalties. This is different from many pension funds where payouts are potentially dependent on the return of the invested funds.
Planning for a comfortable retirement is complex, yet a reachable goal. The most important thing to do is just begin. Patrick Financial Group, L.L.C., with the help of your attorney, CPA and human resource director, can be an integral partner, making an informed decision about creation and implementation of a successful defined benefit plan.
- Employees know in advance what their retirement benefits are
- Employers are responsible for providing retirement benefits
- Employees not covered earlier in their career, can still receive one
- Death and disability insurance are sometimes provided as a benefit
- This plan can provide additional benefits to employees