To be precise, a defined benefit plan is defined in the Internal Revenue Code as a retirement plan "other than an individual account plan." So, if the plan isn't a DC plan, it must be a DB plan. But, as noted earlier, the major determinant of a DB plan is that the benefits be "definitely determinable," generally by a specific (“defined”) formula in the plan document.
In theory, what you "know" at a given point is the benefits due, based on that formula (though that may be easier said than done).
Those benefits are generally paid based on three factors: the worker’s age, service, and compensation. Those benefits paid may be based on Social Security benefits, and may or may not be adjusted for subsequent cost-of-living adjustments, based on the terms of the plan.
In the corporate sector, these programs are insured by the Pension Benefit Guaranty Corporation (PBGC), and the costs of these plans are borne by the employer, including the need to hire actuaries and pay insurance premiums (PBGC), in addition to regular operating costs. In the public sector, these programs also may have an employee-contributory feature.
August 31, 2010
Visteon to Keep Pension Plans Running
Visteon to Keep Pension Plans Running
August 31, 2010 (PLANSPONSOR.com) – A U.S Bankruptcy Court has approved a reorganization plan for auto-part supplier Visteon that will see all of the company’s pension plans remain ongoing.
Fred Schneyer
editors@plansponsor.com
According to a Pension Benefi
August 31, 2010
PBGC Steps In for Maine Paper Mill Plan
PBGC Steps In for Maine Paper Mill Plan
August 31, 2010 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corporation (PBGC) has assumed responsibility for the underfunded pension plan covering more than 2,300 former employees and retirees of bankrupt Fraser Papers Limited.
Fred Schneyer
editors@plansponsor
August 26, 2010
September Deadline Set for Refiling Pension Overpayment Suit
September Deadline Set for Refiling Pension Overpayment Suit
August 26, 2010 (PLANSPONSOR.com) – ING Investment Plan Services has until September 28, 2010, to refile its lawsuit against a Wheaton, Illinois, woman who ING claims has refused to repay $143,000 in a mistaken pension overpayment.
Fred Schneyer
August 26, 2010
Firm Unveils Participant Death Audit Service
Firm Unveils Participant Death Audit Service
August 26, 2010 (PLANSPONSOR.com) – Pension Benefit Information (PBI), a provider of participant research, has unveiled the Platinum Web-Based Death Audit service.
PLANSPONSOR staff
editors@plansponsor.com
A news release from the San Rafael, Califor