Blog: Retirement Plans

A Defined Benefit plan is the type of qualified plan that promises to pay an annual benefit upon the retirement of the participant. The level of the benefit is identified or defined according to the terms of the plan document. The level of benefit usually takes service and amount of average compensation earned by the employee into consideration. The benefits for plan participants are guaranteed by the Pension ...

To determine a participant's vested account balance, the participant's vesting service must be calculated in one of two ways:

• The actual hours method, or
• The elapsed time method

If actual hours of service are counted, the number of hours of service required for a “year of service“ may not be more than 1,000. If the plan uses the elapsed time method, an employee will be credited with a “year of service“ for each period of

• The plan must be in writing ...
  ... More

A qualified domestic relations order (QDRO) is a legal document, filed with the court, that instructs the Plan Administrator of a Defined Benefit plan how benefits are to be divided between separating or divorcing parties. 

The person to whom the participant's interest is transferred is called the "alternate payee." Generally, the alternate payee is the participant's divorcing spouse (including ...