Defined Benefit

A Defined Benefit Plan provides employees with the assurance of guaranteed retirement benefits that are independent of investment performance.  It also allows an employer to save more for retirement than most other types of qualified plan.

Key Benefits

  • Retirement benefits are guaranteed by the employer regardless of investment performance
  • Plan tends to favor older workers
  • Vesting of employer contributions creates an incentive for employees to remain with the employer and thus reduce the cost of turnover


Plan Design
We review each plan provision to help the client understand the options available and the implications of each. We also assist in the selection of an investment portfolio that is consistent with the objectives of the trustees.
We prepare the plan document, Summary Plan Description, specimen Board Of Directors Resolution adopting the plan, loan policy, and QDRO procedure. We obtain a determination letter from the IRS approving the plan. We also provide forms for employees to make various elections and designations.
Ongoing Administration
The ongoing administration of the plan includes trust accounting, eligibility determination, Summary Annual Report, Top Heavy determination, application of all contribution and deduction limits, preparation of the IRS form 5500 filing, including actuarial certification, and coordination with auditors. We determine the contribution necessary to meet minimum funding requirements and we prepare the annual filing for the Pension Benefit Guaranty Association. We continually monitor the operation of the plan to insure that it continues to maintain its qualified status even when the requirements change.