RETIREMENT PLAN FOR COOPERATIVES

The Retirement Plan for Cooperatives is a Defined Benefit Pension Plan that provides employees with monthly retirement income.
The plan can be either contributory or noncontributory.

In a contributory arrangement, employees make personal contributions to the plan to help the employer fund their pension benefits. In a noncontributory plan, the pension benefits are funded totally by the employer.

An employee's benefit is defined by a formula in the plan. The plan formula - Average Monthly Earnings times Benefit Percentage times Credit Service - calculates a life only benefit. Other monthly payment options, including Joint and Survivor options, are available.

The plans use Final Average Pay to calculate the retirement benefits. This means the retirement benefit is calculated using the highest five consecutive years of salary out of the employee's covered career.

Accrued benefits in the plan are insured, up to the mandated maximums, through the Pension Benefit Guarantee Corporation.

ABC provides a complete range of administrative services for Defined Benefit Pension Plans. These include record keeping and employee reports, plan management, government reporting, compliance testing, educational employee meetings and educational videos.

Associated Benefits Corporation, as a Not-for-Profit organization, can offer a high quality, low cost Defined Benefit Pension Plan to your cooperative.

Please contact us for more information about the Retirement Plan for Cooperatives, or any of the other employee benefit services offered by ABC.

ONLINE RETIREMENT ESTIMATE REQUEST