In Defined Benefit Plans retirement benefits are predetermined. Defined benefit plans lack some of the flexibility of 401(k) plans but can allow for much greater contributions. While 401(k) plans have a $52,000 limit for 2014, defined benefit plans offer higher limits, which are based on the age of the employee and the number of years they have left until retirement.
There are a variety of techniques that can be used to allow plan sponsors to vary the contribution from year to year (non-linear).
Plans can provide different benefit formulas to different employees.
Pelion will customize defined benefit plans to fit the financial and benefit objectives of the employer. On an ongoing basis Pelion will update plan provisions to keep up with the changing law and benefit environment and provide unique strategies for keeping plans properly funded.