Cook Illinois Plan de Pensiones de Beneficio Definido y Contrato de Fideicomiso - Defined-Benefit Pension Plan and Trust Agreement

• Category: Fideicomisos - Negocios
• State: Multi-State
• County: Cook
• Control #: US-1073BG
• Format: Word

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 Cook Illinois Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan established for the employees of Cook County in Illinois. It is a defined-benefit plan, which means that the retirement benefit an employee receives is pre-determined based on a formula that takes into account factors such as salary history and years of service. The main purpose of this pension plan is to ensure a reliable source of retirement income for eligible employees who have dedicated their careers to serving the citizens of Cook County. The trust agreement is a legal document that outlines the terms and conditions of the plan, acting as a binding contract between the employer (Cook County) and the employees. Under the Cook Illinois Defined-Benefit Pension Plan, there are different types of agreements tailored to various job classifications within the county. These agreements may include provisions specific to certain groups of employees, ensuring the plan is well-suited to their particular needs and circumstances. For example, there may be separate agreements for public safety employees, healthcare workers, or administrative staff. The plan operates by collecting contributions from both the employees and Cook County, and these funds are then invested with the goal of generating returns that will enable the plan to fulfill its long-term commitments. The plan is managed by a board of trustees who are responsible for overseeing the administration and investment of the assets, ensuring that the plan remains financially sustainable. Upon reaching retirement age or meeting specific criteria, employees eligible for the Cook Illinois Defined-Benefit Pension Plan will receive regular monthly payments for the rest of their lives. The amount of the benefit is determined by a formula that considers factors such as the employee's average salary during their final years of service and the number of years they worked for Cook County. To maintain the financial health of the plan, regular actuarial assessments are conducted to evaluate its funding status. Adjustments may be made to contribution rates or benefits if deemed necessary to ensure the plan can meet its obligations in the long term. In summary, the Cook Illinois Defined-Benefit Pension Plan and Trust Agreement is a retirement plan designed to provide employees of Cook County with a reliable income stream during their retirement years. Through its various agreements, the plan caters to different employee groups, ensuring their specific needs are addressed. By following a defined-benefit structure, the plan guarantees a predetermined retirement benefit based on factors like salary history and years of service. Its trust agreement sets forth the terms and conditions of the plan, acting as a legally binding contract. With careful management by the board of trustees, the plan aims to maintain financial sustainability over time, allowing employees to enjoy a secure retirement.

Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.