Eliminate employee stress with Defined Benefit Plans
A defined benefit plan is a qualified employer-sponsored retirement plan. This means they are qualified to receive certain tax benefits under the law, like tax-deferred investment growth or tax deductions for contributions. Unlike 401(k)s, defined benefit plans are usually funded entirely by employer contributions, although in rare cases employees may be required to make some contributions.
In either case, offering a comprehensive package, driven mostly by employer contributions, can create loyalty and a sense of duty to employees and coworkers.
Defined Benefit Plans benefit employers too
Employers generally get tax breaks for contributing to these plans, but they’re also on the hook for providing the guaranteed payments to beneficiaries, no matter how the underlying investments in a plan might perform. This is one of the biggest distinguishing factors between pension plans and 401(k)s, whose future payments are entirely reliant on unassured investment performance.
If you want happy employees for the long haul, schedule an assessment with Intelliplan. We identify the best solutions for your employee benefits and manage those benefits for you. Our goal is maximizing you, and your employee’s, wealth opportunities.
