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Company Pension Plan

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Posted 3 months ago

 

What are your companies offering for Pension Plans?


I currently can contribute 5% of my annual income and have it matched dollar per dollar by my comany and it's vested after 2 years.


 
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Rate This | Posted 3 months ago

 

My last employer would allow you to invest 5000.00 a year but had no company match. :( Atleast it was pretax deduction.
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Rate This | Posted 3 months ago

 

My company will match up to a 4% annual contribution at 50% - i.e., I put in 4%, they put in 2%.  Also, if profitable for the year, there is a formual where they will put in contributions for profit sharing into the 401(k) plan.


At my previous employer (Cummins, Inc.), they matched also at a 50% rate up to either 6% or 8% - depending on hourly or exempt status for the 401(k) plan.  They also cont4ributed 4% into a Cash Balance plan.
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Rate This | Posted 3 months ago

 

How is a defined benefit pension different from a defined contribution (e.g., 401k-type) plan?
Two key differences exist between a traditional defined benefit (DB) pension and a defined contribution (DC) plan:

  • Investment risk

    Under a DB plan, the employer assumes the investment risk. The amount an employer contributes to a DB plan depends on a number of factors, its members’ ages, years of service, salaries, etc. as well as the return on investments. If investment returns are low, the employer's contribution increases. Conversely, if investment returns are high, the employer’s contribution decreases.



    The amount of the member’s contribution is often fixed by law. Returns on investments do not affect the amount of the member’s contribution



    Under a DC plan, the participant assumes the investment risk. Within certain guidelines, the participant has control over how much he or she contributes to the plan, as well as how those contributions are invested. However, poor investment decisions or negative investment returns due to market performance can result in lower amounts available at retirement.




My last employer's defined contribution plan matched dollar for dollar up to 3% and then 50 cents on 4 and 5%. The plan was a 401(K) Safe Harbor Plan so everyone was vested immediately.  We did not have a defined benefit pension plan.

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