A Defined Benefit Pension Plan is a qualified retirement plan that promises participants a monthly benefit beginning at the plan's normal retirement date. Contributions are determined annually by an enrolled actuary. Contributions are required to be made in order to fund the plan. A Defined Benefit Pension Plan is attracted to the employer that wants to maximize the benefit to the older highly compensated employee. This pension is often the owner of the company. A proposed study should be prepared by FAC to illustrate how a plan could be designed to achieve the objectives of any actual employee group.

Examples of different defined benefit pension plan studies can be viewed below:

Defined Benefit Study 1 - Owner age 55 with 3 employees
Defined Benefit Study 2 - Owner age 55 with no other employees

Pension Plan FAQs