North Carolina 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 North Carolina Defined-Benefit Pension Plan and Trust Agreement is a retirement savings program provided by the state of North Carolina to its employees. It is a type of pension plan that offers fixed, pre-determined benefit payments to eligible participants upon retirement, based on a formula that considers factors like length of service, salary history, and age. This pension plan is designed to provide retirement security for state employees, ensuring a reliable and predictable income during their post-employment years. The North Carolina Defined-Benefit Pension Plan and Trust Agreement is managed by the state's retirement system, which is responsible for investing the funds and administering the plan in accordance with state laws and regulations. The agreement outlines the terms and conditions of the pension plan, including eligibility requirements, benefit calculations, vesting rules, and the procedure for distribution of benefits. It also details the responsibilities of both the employer (the state of North Carolina) and the employees in terms of contributions, reporting requirements, and any additional provisions or benefits that may apply. Within the North Carolina Defined-Benefit Pension Plan and Trust Agreement, there may be different types or tiers of plans based on employee groups or categories. These variations could include specific plans for teachers, law enforcement officers, firefighters, judges, and other state employees. Each plan would have its own set of rules and eligibility criteria tailored to the needs of the particular employee group it serves. Key keywords for this topic: North Carolina, Defined-Benefit Pension Plan, Trust Agreement, retirement savings, pension plan, retirement security, fixed benefit payments, eligibility requirements, benefit calculations, vesting rules, distribution of benefits, employer, contributions, employee groups, teachers, law enforcement officers, firefighters, judges, state employees.

The North Carolina Defined-Benefit Pension Plan and Trust Agreement is a retirement savings program provided by the state of North Carolina to its employees. It is a type of pension plan that offers fixed, pre-determined benefit payments to eligible participants upon retirement, based on a formula that considers factors like length of service, salary history, and age. This pension plan is designed to provide retirement security for state employees, ensuring a reliable and predictable income during their post-employment years. The North Carolina Defined-Benefit Pension Plan and Trust Agreement is managed by the state's retirement system, which is responsible for investing the funds and administering the plan in accordance with state laws and regulations. The agreement outlines the terms and conditions of the pension plan, including eligibility requirements, benefit calculations, vesting rules, and the procedure for distribution of benefits. It also details the responsibilities of both the employer (the state of North Carolina) and the employees in terms of contributions, reporting requirements, and any additional provisions or benefits that may apply. Within the North Carolina Defined-Benefit Pension Plan and Trust Agreement, there may be different types or tiers of plans based on employee groups or categories. These variations could include specific plans for teachers, law enforcement officers, firefighters, judges, and other state employees. Each plan would have its own set of rules and eligibility criteria tailored to the needs of the particular employee group it serves. Key keywords for this topic: North Carolina, Defined-Benefit Pension Plan, Trust Agreement, retirement savings, pension plan, retirement security, fixed benefit payments, eligibility requirements, benefit calculations, vesting rules, distribution of benefits, employer, contributions, employee groups, teachers, law enforcement officers, firefighters, judges, state employees.