Massachusetts Defined-Benefit Pension Plan and Trust Agreement

• Category: Trusts - Business
• State: Multi-State
• Control #: US-1073BG
• Format: Word; Rich Text

Description

A defined benefit pension plan is a type of pension plan in which an employer or sponsor promises a specified pension payment, lump-sum (or combination thereof) on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provided defined benefit plans, sometimes as a means of compensating workers in lieu of increased pay. A defined benefit plan is "defined" in the sense that the benefit formula is defined and known in advance. Conversely, for a "defined contribution retirement saving plan", the formula for computing the employer's and employee's contributions is defined and known in advance, but the benefit to be paid out is not known in advance. The Massachusetts Defined-Benefit Pension Plan and Trust Agreement is a document that outlines the specifics and intricacies of the state's defined-benefit pension plan program. This plan is designed to provide retirement benefits to eligible public employees in Massachusetts, ensuring a secure financial future upon their retirement. Under this agreement, a defined-benefit pension plan is established, which means that the retirement benefits are predetermined based on a formula, taking into consideration factors like the employee's salary, years of service, and age at retirement. This ensures that retirees receive a regular stream of income during their retirement years, directly proportional to their public service tenure. The Massachusetts Defined-Benefit Pension Plan and Trust Agreement establishes the operational framework, guidelines, and fiduciary responsibilities for managing the pension plan assets and benefits. The trust provisions include crucial aspects such as funding, investment strategies, distribution rules, and payout options. It is important to note that there may be different types of Massachusetts defined-benefit pension plans depending on the public employees' affiliation, including but not limited to: 1. Massachusetts State Employees' Pension Plan: This plan is specifically tailored for individuals employed by state agencies and departments, including teachers, state police, administrative personnel, and other state employees. 2. Massachusetts Teachers' Retirement System (MRS): This plan is exclusive to teachers and school administrators in public schools, colleges, and universities within the state. MRS is responsible for managing the retirement benefits and ensuring the pension fund's financial stability. 3. Massachusetts State Police Retirement System (MS PRS): Designed specifically for active and retired members of the Massachusetts State Police, this plan provides retirement benefits to law enforcement officers who have dedicated their careers to public safety. The Massachusetts Defined-Benefit Pension Plan and Trust Agreement reflects the state's commitment to offer public employees a secured retirement plan, promoting financial stability and rewarding their dedicated service to the Commonwealth. By outlining the specifics of the plan and trust, participating employees can confidently plan for their retirement knowing that their financial future will be supported by the defined-benefit pension.

The Massachusetts Defined-Benefit Pension Plan and Trust Agreement is a document that outlines the specifics and intricacies of the state's defined-benefit pension plan program. This plan is designed to provide retirement benefits to eligible public employees in Massachusetts, ensuring a secure financial future upon their retirement. Under this agreement, a defined-benefit pension plan is established, which means that the retirement benefits are predetermined based on a formula, taking into consideration factors like the employee's salary, years of service, and age at retirement. This ensures that retirees receive a regular stream of income during their retirement years, directly proportional to their public service tenure. The Massachusetts Defined-Benefit Pension Plan and Trust Agreement establishes the operational framework, guidelines, and fiduciary responsibilities for managing the pension plan assets and benefits. The trust provisions include crucial aspects such as funding, investment strategies, distribution rules, and payout options. It is important to note that there may be different types of Massachusetts defined-benefit pension plans depending on the public employees' affiliation, including but not limited to: 1. Massachusetts State Employees' Pension Plan: This plan is specifically tailored for individuals employed by state agencies and departments, including teachers, state police, administrative personnel, and other state employees. 2. Massachusetts Teachers' Retirement System (MRS): This plan is exclusive to teachers and school administrators in public schools, colleges, and universities within the state. MRS is responsible for managing the retirement benefits and ensuring the pension fund's financial stability. 3. Massachusetts State Police Retirement System (MS PRS): Designed specifically for active and retired members of the Massachusetts State Police, this plan provides retirement benefits to law enforcement officers who have dedicated their careers to public safety. The Massachusetts Defined-Benefit Pension Plan and Trust Agreement reflects the state's commitment to offer public employees a secured retirement plan, promoting financial stability and rewarding their dedicated service to the Commonwealth. By outlining the specifics of the plan and trust, participating employees can confidently plan for their retirement knowing that their financial future will be supported by the defined-benefit pension.