Montgomery Maryland Plan de Pensiones de Beneficio Definido y Contrato de Fideicomiso - Defined-Benefit Pension Plan and Trust Agreement

• Category: Fideicomisos - Negocios
• State: Multi-State
• County: Montgomery
• 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. Montgomery, Maryland Defined-Benefit Pension Plan and Trust Agreement is a retirement program established by the County of Montgomery, Maryland, for its employees to provide them with a secure and reliable source of income during their retirement years. This pension plan operates under the guidelines set by the Internal Revenue Service (IRS) and is intended to ensure long-term financial stability for eligible employees and their beneficiaries. The Montgomery Maryland Defined-Benefit Pension Plan and Trust Agreement offers a defined-benefit structure, meaning that the retirement benefit amount is fixed based on a predetermined formula, typically considering factors such as years of service, final average salary, and age at retirement. This structure provides employees with a guaranteed income stream upon retirement, eliminating the financial risks and uncertainties associated with market fluctuations. The trust agreement component of the plan safeguards the pension funds and assets, ensuring that they are managed prudently and in the best interest of the plan participants. The trust agreement outlines the responsibilities and duties of the trustees who oversee the investment and administration of the pension assets. The trustees are entrusted with the responsibility of acting in the best interest of the plan participants, ensuring compliance with applicable laws and regulations, and ensuring the long-term sustainability of the plan. The Montgomery Maryland Defined-Benefit Pension Plan and Trust Agreement aims to provide retirement security to all eligible employees of Montgomery County. It offers a valuable package of benefits to plan participants and their beneficiaries, including a stable income stream, survivor benefits, and potentially cost-of-living adjustments. The plan encourages employees to serve the county for an extended period, as benefits often increase with years of service, making it an attractive long-term incentive for employees. While there may not be distinct types of Montgomery Maryland Defined-Benefit Pension Plan and Trust Agreement, the plan's provisions and structure may vary depending on an employee's category or employment group, such as general employees, police officers, firefighters, or elected officials. Each group may have its own specific eligibility criteria, benefit formulas, and contribution rates. Therefore, it is important for employees to consult the plan documents and professionals specializing in retirement planning to gain an accurate understanding of their individual retirement benefits under the Montgomery Maryland Defined-Benefit Pension Plan and Trust Agreement.

Montgomery, Maryland Defined-Benefit Pension Plan and Trust Agreement is a retirement program established by the County of Montgomery, Maryland, for its employees to provide them with a secure and reliable source of income during their retirement years. This pension plan operates under the guidelines set by the Internal Revenue Service (IRS) and is intended to ensure long-term financial stability for eligible employees and their beneficiaries. The Montgomery Maryland Defined-Benefit Pension Plan and Trust Agreement offers a defined-benefit structure, meaning that the retirement benefit amount is fixed based on a predetermined formula, typically considering factors such as years of service, final average salary, and age at retirement. This structure provides employees with a guaranteed income stream upon retirement, eliminating the financial risks and uncertainties associated with market fluctuations. The trust agreement component of the plan safeguards the pension funds and assets, ensuring that they are managed prudently and in the best interest of the plan participants. The trust agreement outlines the responsibilities and duties of the trustees who oversee the investment and administration of the pension assets. The trustees are entrusted with the responsibility of acting in the best interest of the plan participants, ensuring compliance with applicable laws and regulations, and ensuring the long-term sustainability of the plan. The Montgomery Maryland Defined-Benefit Pension Plan and Trust Agreement aims to provide retirement security to all eligible employees of Montgomery County. It offers a valuable package of benefits to plan participants and their beneficiaries, including a stable income stream, survivor benefits, and potentially cost-of-living adjustments. The plan encourages employees to serve the county for an extended period, as benefits often increase with years of service, making it an attractive long-term incentive for employees. While there may not be distinct types of Montgomery Maryland Defined-Benefit Pension Plan and Trust Agreement, the plan's provisions and structure may vary depending on an employee's category or employment group, such as general employees, police officers, firefighters, or elected officials. Each group may have its own specific eligibility criteria, benefit formulas, and contribution rates. Therefore, it is important for employees to consult the plan documents and professionals specializing in retirement planning to gain an accurate understanding of their individual retirement benefits under the Montgomery Maryland Defined-Benefit Pension Plan and Trust Agreement.

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.