Taylor Benefits has been providing Texas employee groups and businesses with sensible, easy-to-manage pension plans for more than 20 years. We provide free estimates to all prospective clients and are happy to answer any questions and give consultations over the phone. Here are some of the basics you’ll need to know about if you’re considering offering a group pension plan in Texas.
Defined benefit – A defined benefit pension plan offers the employee a set amount upon retirement. Under a defined benefit plan, the payout is not affected by the performance of the investment vehicle. The amount dispersed is based on the amount earned by the employee, how long they’ve been with the company, and their age. Payments are generally made on a monthly basis after retirement.
Need to learn more about the different types of pension plans and which one will work best for your business? This document from the U.S. Department of Labor covers the basics. Feel free to call us with your questions!
Defined contribution – A defined contribution plan does not have a fixed payout amount as with a defined benefit pension. Instead, the contribution toward the pension is fixed and the performance of the investment dictates the amount the employee will receive after retiring.
Simplified Employee Pension (SEP) – With an SEP plan, employers contribute to the retirement plan on behalf of employees, usually through a standard IRA. The advantages of an SEP plan are that it simplifies the investment process for employees and keeps administrative costs low for businesses owners. Contribution rates also tend to be more flexible with an SEP plan. (An added benefit of these types of plans is that they require very little paperwork and administration.)
Click this link to learn more about Simplified Employee Pension plans from the Internal Revenue Service website.
Get a FREE estimate on the cost of providing group pension plans in Texas by contacting us today! We are happy to answer questions and give price quotes for FREE! Call us at the number at the top of the page or use our request form at the right of this page to get st
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