Types of Pension Plans - DC or DB
Types of Formulas for Plans
Qualified or Non-qualified Plans
Qualification Legislation
Qualified Plan Players
100
Plan formula defines the annual contribution to an individual account
What is a Defined Contribution Plan?
100
Flat amount of money credited for each year of service
What is Flat Dollar?
100
Broad-based plans with a wide range of tax advantages
What is a Qualified Plan?
100
This Act made EGTRRA's provisions permanent
What is the Pension Protection Act of 2006 (PPA)?
100
Individual covered by the plan - employees, retirees, and beneficiaries
Who is the participant?
200
Each participant has a separate account
What is a Defined Contribution Plan?
200
Percentage of final years' earnings for each year of service
What is Final Average Pay?
200
Less regulated of the two
What is a Non-Qualified plan?
200
This was created in response to abuse of qualified retirement plans
What is the Employee Retirement Income Security Act of 1974 (ERISA)?
200
Entity in charge of the overall operations of the plan
Who is the Plan Administrator?
300
Generally tilt benefits toward older, long service employees
What is a Defined Benefit Plan?
300
The amount contributed is determined by the employer and is not contingent on employee contributions. Also, the amount can vary from year-to-year.
What is Profit Sharing?
300
Backed by trust assets
What is a Qualified Plan?
300
The Government agency that guarantees the payment of vested retirement benefits up to a maximum monthly benefit amount
What is the Pension Benefit Guaranty Corporation (PBGC)?
300
Entity in charge of the plan's assets
Who is the trustee?
400
The employee has the investment risk
What is a Defined Contribution Plan?
400
The amount contributed is defined in the plan and can be integrated
What is Money Purchase?
400
Mostly for Executives and key employees
What is a Non-Qualified Plan?
400
Introduced funding relief due to economic downturn
What is the Retiree and Employer Recovery Act of 2008 (WRERA)?
400
Legal entity covering the funding of the plan
Who is the Plan Sponsor?
500
PBGC premiums
What is a Defined Benefit Plan?
500
Employee salary reduction on either before-tax or after-tax basis. Can have employer match and employee directs investments and bears the investment risk/reward
What is a 401K?
500
Funding is required for Defined Benefit Plans
What is a Qualified Plan?
500
Introduced interest rate stabilization to minimum funding
What is the Moving Ahead for Profess in the 21st Century Act (MAP-21)?
500
This person is not under the plan sponsor's control
Who is the trustee?