Defined Benefit Plans
A traditional DB plan can deliver benefit payments that can last throughout retirement for business owners, highly compensated employees, and all other staff. These plans typically offer the maximum potential benefit that can be provided, making it a powerful solution for plan sponsors who want to reward and retain top employees.
Why Choose FuturePlan?
FuturePlan offers high-touch personalized service from local TPAs backed by the strength and security of a large national firm.
Breadth of experience
FuturePlan experts have been designing and implementing DB plans since 1980 across all industry sectors.
Service teams are maintained that only support DB plans and offer everything from plan provision reviews and eligibility determination, to asset reconciliation and document preparation.
Consulting is available related to re-risking strategies, frozen or terminating plans, and plan design.
Defined Benefit plans are ideal for profitable employers who want to reward valuable employees, and offer a known and reliable benefit at retirement that’s not dependent on how much an employee can afford to save on their own.
A DB plan can allow for accelerated retirement savings by allowing larger employer contributions, and can provide greater employer tax deductions or tax deferrals compared to a 401(k) plan.
Employer contributions are tax deductible, and an employer can make additional tax-deductible contributions to fund future required contributions.
Pension Benefit Guaranty Corporation Coverage
Usually, DB plans are insured by the PBGC.
Assets are invested by the plan’s fiduciary, rather than by individual plan participants, which gives the employer more control over investments.
Employees defer taxation on their benefit accruals until they begin receiving benefit payments (i.e., monthly annuity payments or a lump sum).