Topic: Home > Benefits > Retirement > Defined Benefit Plans and Pensions
Defined pension benefits are a good way for an employer to promise retirement security to his employees. The plan is fairly simple, involving a portion of employees pay going into a pension fund that begins to be dispersed when the employee ceases to work. At that point, the employee has a few choices. He or she can either receive a full sum up front or have it paid out in the form of monthly checks until the fund is exhausted. Pension funds for a married employee are most often dispersed to the spouse as well. Certain government plans require employees to pay into a pension fund. While this does provide security, there is a lot of griping involved, especially among younger employees who would rather have the money in their pockets. Yet even when a pension plan is voluntary, it is not always the most attractive. A savvy employer will analyze his working base before deciding to go forward with a defined pension benefits plan. Of course, there are some advantages. Because the pension plan can combine with the social security system, employers are sometimes able to cut benefit costs by half. As always, it is wise to keep tabs on employee satisfaction factors, and plan accordingly.
Employee Benefits Administration Offers a stunning overview of the role of the Human Resource professional in administering employee benefits. Every manager in charge of benefits administration should visit this website. Highly recommended. http://www.benefits-administration.org/
A Predictable, Secure Pension for Life: Defined Benefit Pensions http://www.pbgc.gov/docs/A_Predictable_Secure_Pension_for_Life.pdf
The Pension Benefit Guaranty Corporation (PBGC) and Defined Benefit Pension Plans The Pension Benefit Guaranty Corporation (PBGC) insures certain defined benefit pension plans by guaranteeing benefits up to certain legal limits http://www.pensionconsultant.com/pbgc/index.html
