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.