Defined Contribution Plan
Learn about your defined contribution plan and more with Michigan Planners Retirement Services
At Michigan Planners, we know that thinking about retirement tends to bring up more questions than answers. With Michigan Planners Retirement Services, we can make sure that you’re asking the right questions… and work with you to find every answer you need.
This includes deciding what type of pension plan works best for you. The Employee Retirement Income Security Act (ERISA) covers two types of pension plans: defined benefit plans and defined contribution plans.
A defined contribution plan does not promise a specific amount of benefits at retirement. In these plans, the employee or the employer (or both) contribute to the employee’s individual account under the plan, sometimes at a set rate, such as 5 percent of earnings annually. These contributions generally are invested on the employee’s behalf. The employee will ultimately receive the balance in their account, which is based on contributions plus or minus investment gains or losses. The value of the account will fluctuate due to the changes in the value of the investments. Examples of defined contribution plans include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans.
Michigan Planners retirement services will guide you through the process of developing your retirement benefits portfolio. Our step-by-step action plan includes:
- consulting and planning in all areas of plan design – including defined contribution plans, defined benefit plans, employee stock ownership plans, and nonqualified plans
- providing access to the industry’s best products, providers and services
- utilizing “Best Practice” solutions to develop and promote successful and sustainable retirement plans
We’re an Independent Retirement Plan Advisor, which means we’re able to provide consulting and assistance to you every step of the way. We’ll even provide you with ongoing reviews that include result measurements of:
- Retirement Readiness Calculations
- Plan Benchmarking of Cost and Services
- Investment Oversight
Whether you’re planning on providing a defined contribution plan or defined benefits plan to your employees, Michigan Planners Retirement Services can help devise the best program for your employees.
Call Michigan Planners today!