A Defined Benefit Plan is an employer-sponsored retirement plan, but it is entirely different from many pension funds where payouts are dependent on the return of the invested funds. With a defined benefit plan, employee benefits are determined by personal factors such as years of service or salary. It promises a specific monthly benefit at retirement, sometimes an exact dollar amount, but more often a percentage determined by the assessment of each employee’s personalized factors. There are restrictions to when and how you can withdraw these funds without penalty.
At Charter Trust, we will assist in working with a third party administrator and actuary to manage your plan, and we will invest the assets in the plan in accordance with the plan document and current laws.