- Employer contributions are mandatory and are determined by an enrolled actuary based on the benefit formula and actuarial assumptions under the plan.
- Deductible contributions greater than allowed under Defined Contribution Plans are possible.
- Participants vest in (own) their accrued benefits based on their years of service and the vesting schedule under the plan.
- Employees must generally satisfy an age and/or service requirement in order to participate in the plan.
- No in-service withdrawals allowed before normal retirement age
- Loans may be allowed (subject to restrictions).
- Required Minimum Distributions starting at age 70½. Some plans defer this distribution until actual retirement for non-5% owners.
Defined Benefit Pension Plans