Pension Plan Design

Plan design is crucial to the effectiveness of a retirement plan.  The plan must provide the benefit structure to meet the goals of the sponsoring employer.

These days, many people are familiar with 401(k) plans. A defined contribution plan can include a 401(k) and can also allow the employer to make additional contributions for owners and employees. Generally, this type of plan provides the lowest contribution and deduction level when compared to more complex plan design. Our professionals have over 25 years of experience with defined contribution plans and can help you design one that meets your specific needs and goals.

A cash balance plan allows the employer to make higher contributions and potentially skew the contribution allocation to favor key employees and business owners. There are also additional risks and costs associated with this type of plan. We monitor the plan design to make certain that the plan adapts to any changes that may occur within the business itself or among the employees and their goals.

 

Designing  a combined plan properly takes years of experience, and TBC has that covered. These type of customized plans utilize the defined contribution plan in conjunction with a defined benefit or cash balance plan. This combination can be a powerful tool to further increase contributions and deductions and must be designed properly to work effectively. This type of plan requires that the employer have a significant annual cash flow to support deductions and is more expensive to operate than a Defined Contribution Plan alone.

Generally, a defined benefit plan allows the employer to make the highest level of contributions and receive the greatest tax deduction. In certain situations this can provide a significant benefit to key employees and business owners. Whether your goals are to provide a small benefit to your employees or gain a large deduction for the business, we can work with you to meet your goals. 

Pension Consulting

Implementing a retirement plan can provide many benefits for your organization and its employees but can be a confusing process. Our pension consulting services can help take the confusion out of plan administration. 

We will review your existing plan documents and allocations to ensure that the plan continues to meet the goals of the employer. We will review and recommend any changes to the design that may enhance your existing program.

We will assist with the redesign of your existing plan and work with your current investment advisor to assess the overall administration of the plan.

When errors have been made in the administration of the plan, they need to be corrected, in order for the plan to remain qualified. The IRS and DOL have correction programs in place to allow employers to fix these errors. We can guide the employer through this process and prepare the documentation necessary.

The IRS and DOL have auditors focusing on pension plan compliance. If you receive notice that you are scheduled to be examined, we strongly suggest that you seek experienced professional assistance to help you through the process. We can work directly with the auditor and guide you through this process and prepare the documentation necessary.

Pension Plan Compliance and Administration

Often overlooked, plan administration is a key part of a qualified retirement plan. TBC will provide full service third party administration services to all types of retirement plans.

 

The U.S. Department of Labor and the Internal Revenue Service have specific requirements for retirement plans to remain qualified including annual testing for non-discrimination and filing of annual reports with the Employee Benefit Security Administration. TBC is committed to filing your Form 5500 and other necessary forms in a timely fashion. We provide full service third party administration services to all types of retirement plans and as such, it is our goal to work with the employer to make sure the plan is kept in compliance and provide the annual services necessary to do that. These services include, but are not limited to, contribution calculations, annual testing, required notices, and DOL/IRS annual reporting.

Often overlooked, plan administration is a key part of a qualified retirement plan. The U.S. Department of Labor and the Internal Revenue Service have specific requirements for retirement plans to remain qualified including annual testing for non-discrimination and filing of annual reports with the Employee Benefit Security Administration. We also have the ability to offer consulting services to the employers who may be in an IRS or DOL audit situation.