Two common types of pension plans
Posted on Monday, November 23rd, 2009 at 4:49 am
Employers structure pension plans in a variety of ways. One type includes direct benefit plans. Under these plans, the employer promises to pay an employee a certain benefit upon retirement.
These plans, however, differ from direct compensation plans. Under these plans, employers promise to match a certain level of an employee's contribution. The combined contribution in the plan is then managed in a fund, in which the employee bears the investment risk.
If your company has legal questions about its pension plans, contact the Des Moines business litigation attorneys of LaMarca Law Group, P.C., at (877) 327-2600.