A Defined Benefit Plan, sometimes referred to as a fully funded pension plan, promises the participant a specific monthly benefit at retirement. Unlike defined contribution plans, the participant is not required to make investment decisions or contributions.

Defined Benefit Plans provide guaranteed retirement income security for workers. There is no investment risk to participants or cost of living adjustments and they are not dependent on the participant's ability to save.

However, Defined Benefit Plans can be complex and somewhat costly for the employer to maintain. Benefit Design Associates can discuss the advantages and drawbacks of a Defined Benefit Plan in contrast to a defined contribution plan in which the employer puts the responsibility of investing in the hands of the employee.

For a no-obligation quote, use our online Quote Forms under Resources or call 480.998.0096.