For this purpose, a “cash balance” formula is a benefit formula in a defined benefit plan by whatever name (for example, personal account plan, pension equity plan, life cycle plan, cash account plan, etc.) that rather than, or in addition to, expressing the accrued benefit as a life annuity commencing at normal retirement age, defines benefits for each employee in terms more common to a defined contribution plan such as a “single sum distribution amount” (for example, 10 percent of final average pay times years of service, or the amount of the employee’s hypothetical account balance). This Plan is in the nature of a “Cash Balance” or similar plan, meaning that the Plan has a “cash balance” formula for determining benefits.Benefits accrued under this Plan are primarily pay related.Features of the NIAGARA MOHAWK PENSION PLAN may include: This includes beneficiary designations and "surviving spouse" benefits. Additionally, the retirement of the Participant prior to the entry of a QDRO will typically limit the Alternate Payee to receiving only a portion of the Participant’s benefits based upon the election made at the Participant’s benefit commencement. When dividing a defined benefit plan, it is critical to know the types of benefits available under the terms of the applicable plan. Rather, the Alternate Payee’s award is typically made in terms of a monthly benefit payable for either the lifetime of the Participant (a "shared payment") or the lifetime of the Alternate Payee (a "separate interest"). With this type of plan, the Alternate Payee is usually not awarded a lump sum cash payment from the plan. The type of benefits available may vary significantly from plan to plan. It is rare, but some plans may allow for a lump sum payment of benefits instead of a monthly payment. Benefits accumulated under defined benefit plans are often referred to as "accrued benefits". Benefits are generally payable to a participant upon reaching "normal retirement age" for the remainder of the Participant's lifetime. Benefits paid at the time of retirement are calculated using a formula based upon years of "credited service" and the Participant’s compensation information. A defined benefit plan is traditionally referred to as a "pension plan." This type of plan typically provides participants with a monthly retirement benefit upon reaching a specific age for either a specific period of time, or for the Participant’s lifetime, depending upon the form of benefits offered by the plan and selected by the Participant. NIAGARA MOHAWK PENSION PLAN is a DEFINED BENEFIT PLAN.
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