defined_benefit_plan - service This is a complex actuarial...

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Defined Benefit Plan (A traditional union pension plan) provide services pay wages makes a promise to provide pension payments at retirement varying defined (fixed) contributions pension benefits paid d u r i n g r e t i r e m e n t Notes: Contributions to pension fund are a function of ERISA requirements, state laws, tax considerations, labor contracts, and the availability of funds. Benefits paid to retirees often are a function of salary (average or years near retirement) and years of
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Unformatted text preview: service. This is a complex actuarial present value computation. The employer is responsible for the payment of the defined benefit without regards to what happens to the assets in the trust. Employers are a risk because they must contribute enough to meet the cost of benefits that the plan defines. Employer Current employees Retirees Pension trust fund - separate legal entity - controls/invests assets - makes payments to retirees...
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