Types of Plans
Defined Benefit Plans
In defined benefit (DB) plans, the retirement benefit is defined as an annuity payable at retirement.
Cash Balance Plans
A cash balance plan is a type of defined benefit (DB) plan that looks and feels like a defined contribution (DC) plan, such as a profit sharing plan.
Floor Offset Arrangements
A floor offset arrangement is a defined benefit (DB) plan combined with a defined contribution (DC) plan such as a profit sharing plan to provide a total benefit.
Defined Contribution Plans
Defined contribution plans may include both employee contributions (commonly known as 401(k) deferrals) and employer contributions.
Profit Sharing Plans
A profit sharing contribution is a discretionary employer contribution made on behalf of plan participants.
Plans with a 401(k) provision allow a participant to contribute or “defer” a portion of his or her own compensation to the plan for investment.
Other Post Employment Benefit Plans (OPEBs)
Plans that offer benefits other than pension after termination of employment are commonly referred to as “Other Post-Employment Benefit Plans (OPEBs)”.