San Jose California Plan de Pensiones de Beneficio Definido y Contrato de Fideicomiso - Defined-Benefit Pension Plan and Trust Agreement

• Category: Fideicomisos - Negocios
• State: Multi-State
• City: San Jose
• 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 San Jose California Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan established by the city of San Jose, California, for its eligible public employees. This pension plan offers a fixed income to retirees based on a specific formula, often determined by factors such as years of service, final average salary, and age at retirement. It is important to note that there may be variations or different types of defined-benefit pension plans within the San Jose California system, each catering to specific employee groups or unions. One of the primary goals of the San Jose California Defined-Benefit Pension Plan and Trust Agreement is to provide financial security and stability to retirees by ensuring a guaranteed income throughout their retirement years. Unlike defined-contribution plans (such as 401(k) or 403(b) plans), where the retirement benefit is dependent on investment returns, defined-benefit plans promise a predetermined income source. The plan is governed by legal provisions, including the San Jose California Defined-Benefit Pension Plan and Trust Agreement, which outlines the terms, conditions, and guidelines for the operation and administration of the pension fund. The agreement covers aspects such as eligibility criteria, contribution rates, vesting schedules, retirement age, and survivor benefits. Employees who participate in the San Jose California Defined-Benefit Pension Plan and Trust Agreement typically contribute a portion of their salary towards the plan. These contributions, along with employer contributions, are then invested in various financial instruments to grow the pension fund's assets. The plan aims to generate returns that will cover the retirement benefits promised to the employees. The San Jose California Defined-Benefit Pension Plan and Trust Agreement also incorporates provisions for disability retirement, allowing eligible employees to receive benefits in the event of a disabling injury or illness that prevents them from continuing their employment. It is worth mentioning that given the varying needs and requirements of different employee groups, there might be specific variations or types of San Jose California Defined-Benefit Pension Plans and Trust Agreements. For example, there could be different plans tailored to different unions or public service sectors, such as police, firefighters, teachers, or general city employees. These variations may include unique benefit formulas, retirement ages, or contribution rates. It is important for employees to understand the specific terms and conditions of the plan they are enrolled in. The San Jose California Defined-Benefit Pension Plan and Trust Agreement play a crucial role in attracting and retaining talented public employees by assuring them of a stable and secure retirement income. It serves as a vital component of the overall compensation package offered by the city of San Jose, California, ensuring the well-being and financial security of its workforce during their retirement years.

The San Jose California Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan established by the city of San Jose, California, for its eligible public employees. This pension plan offers a fixed income to retirees based on a specific formula, often determined by factors such as years of service, final average salary, and age at retirement. It is important to note that there may be variations or different types of defined-benefit pension plans within the San Jose California system, each catering to specific employee groups or unions. One of the primary goals of the San Jose California Defined-Benefit Pension Plan and Trust Agreement is to provide financial security and stability to retirees by ensuring a guaranteed income throughout their retirement years. Unlike defined-contribution plans (such as 401(k) or 403(b) plans), where the retirement benefit is dependent on investment returns, defined-benefit plans promise a predetermined income source. The plan is governed by legal provisions, including the San Jose California Defined-Benefit Pension Plan and Trust Agreement, which outlines the terms, conditions, and guidelines for the operation and administration of the pension fund. The agreement covers aspects such as eligibility criteria, contribution rates, vesting schedules, retirement age, and survivor benefits. Employees who participate in the San Jose California Defined-Benefit Pension Plan and Trust Agreement typically contribute a portion of their salary towards the plan. These contributions, along with employer contributions, are then invested in various financial instruments to grow the pension fund's assets. The plan aims to generate returns that will cover the retirement benefits promised to the employees. The San Jose California Defined-Benefit Pension Plan and Trust Agreement also incorporates provisions for disability retirement, allowing eligible employees to receive benefits in the event of a disabling injury or illness that prevents them from continuing their employment. It is worth mentioning that given the varying needs and requirements of different employee groups, there might be specific variations or types of San Jose California Defined-Benefit Pension Plans and Trust Agreements. For example, there could be different plans tailored to different unions or public service sectors, such as police, firefighters, teachers, or general city employees. These variations may include unique benefit formulas, retirement ages, or contribution rates. It is important for employees to understand the specific terms and conditions of the plan they are enrolled in. The San Jose California Defined-Benefit Pension Plan and Trust Agreement play a crucial role in attracting and retaining talented public employees by assuring them of a stable and secure retirement income. It serves as a vital component of the overall compensation package offered by the city of San Jose, California, ensuring the well-being and financial security of its workforce during their retirement years.

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.