Pension plans

A more prophylactic protection against the economic dislocation of a layoff is the pension and retirement fund. The exact nature of the rights and benefits offered by a private pension plan, of course, depends upon the particular provisions of that plan, and great variety exists. Some states regard a retirement plan as wages withheld in order to induce continued faithful service on the employee s part therefore, the state inter-... 

Perhaps more important than state law, however, in determining one s legal rights under a pension plan is ERISA—the 1974 Employee Retirement Income Security Act. ERISA, by altering the requirements which employee retirement benefit plans must meet in order for an employers contributions to qualify for tax deductibility, has standardized private pension plans in ways most favorable to covered employees. Tax savings and protections are also available under either a qualified group retirement plan or an H.R. 10, Keogh, or I.R.A. plan wherein an individual may set up a tax-deferred retirement fund for himself. 

Employee benefit packages for firefighters also vary from department to department, but they tend to be substantial. Common benefits include medical, disability, and life insurance sick leave, vacation, and holiday pay educational incentives and a generous pension plan. Departments also supply the uniforms and personal equipment that firefighters use on the job. 

In retirement, most people receive income from three sources—employer pension plans, Social Security, and personal savings. In the following calculation, you estimate what you can expect from employer pensions and Social Security. This is compared to your estimated retirement income needs to determine what you must provide from personal savings. 

The Social Security Administration sends an annual statement of earnings history and benefits estimate to every wage earner. You may also phone (800) SSA-1213 or visit the Social Security web site (www.ssa.gov) to request a customized benefits estimate. Also, your employer s pension plan administrator will provide an estimate of your pension benefits. 

NOTE Generally, employees covered by wealthbuilding benefit plans do not fully own ( vest in ) funds contributed on their behalf by the employer until as many as five years of service with that employer have passed. All pension plans are voluntary—that is, employers are not obligated to offer pensions. 

Pension Plan The firm offers a pension plan to qualified employees. In this case, in order for a Y to appear, the editors believe that the employer offers a defined benefit or cash balance pension plan (see discussions below).The type and generosity of these plans vary widely from firm to firm. Caution Some employers refer to plans as pension or retirement plans when they are actually 401(k) savings plans that require a contribution by the employee. 

Defined Benefit Pension Plans Pension plans that do not require a contribution from the employee are infrequently offered. However, a few companies, particularly larger employers in high-profit-margin industries, offer defined benefit pension plans where the employee is guaranteed to receive a set pension benefit upon retirement. The amount of the benefit is determined by the years of service with the... 

Pension Plan Y ESOP Stock Plan Y Profit Sharing Top Exec. Salary 1,600,000 Bonus 778,328... 

Pension Plan ESOP Stock Plan Profit Sharing Top Exec. Salary 300,839 Bonus 184,800... 

SALARIES/BENEFITS Pension Plan ESOP Stock Plan Savings Plan Stock Purch. Plan Profit Sharing Top Exec. Salary 360,000 Second Exec. Salary 150,000 Bonus 197,292 Bonus 27,000... 

Toll-Free 866-513-2325 The company offers its employees health and dental care a travel plan disability income protection and a pension plan. 

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