Colorado Defined-Benefit Pension Plan and Trust Agreement

• Category: Trusts - Business
• State: Multi-State
• Control #: US-1073BG
• Format: Word; Rich Text

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 Colorado Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan established by the State of Colorado for its employees. This plan provides a guaranteed income stream during retirement, based on a predetermined formula that takes into account factors such as years of service, age, and salary. It is considered a defined-benefit plan because the benefits at retirement are defined in advance. The Colorado Defined-Benefit Pension Plan and Trust Agreement is designed to provide financial security to employees who contribute to the plan throughout their working years. It ensures a stable income and acts as a form of long-term investment, allowing employees to have a comfortable retirement. There are various types of Colorado Defined-Benefit Pension Plan and Trust Agreements offered to different groups of employees, depending on their employment classification or membership in certain organizations. These include: 1. Colorado Public Employees' Retirement Association (ERA): This plan covers employees of state government agencies, local governments, schools, and other public entities in Colorado. It is one of the largest and most well-known defined-benefit pension plans in the state. 2. Colorado Statewide Death and Disability Plan: This plan provides benefits to the survivors of eligible public employees in the event of death or disability. It aims to financially support the employee's beneficiaries and dependents during challenging times. 3. Colorado State Troopers Retirement Plan: This plan is specifically tailored for the retirement needs of Colorado State Troopers, providing them with enhanced benefits and retirement options that recognize the unique risks and challenges associated with their occupation. 4. Colorado Judicial Retirement Plan: This plan encompasses judges and justices of the Colorado state court system, offering them specific retirement benefits commensurate with their position and service to the legal system. In summary, the Colorado Defined-Benefit Pension Plan and Trust Agreement is a range of retirement plans established by the State of Colorado to provide a secure income stream for its employees. These plans vary depending on the employee's classification and professional organization. The state understands the importance of providing robust retirement benefits to attract and retain talented individuals, as well as ensuring their financial well-being in their post-employment years.

The Colorado Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan established by the State of Colorado for its employees. This plan provides a guaranteed income stream during retirement, based on a predetermined formula that takes into account factors such as years of service, age, and salary. It is considered a defined-benefit plan because the benefits at retirement are defined in advance. The Colorado Defined-Benefit Pension Plan and Trust Agreement is designed to provide financial security to employees who contribute to the plan throughout their working years. It ensures a stable income and acts as a form of long-term investment, allowing employees to have a comfortable retirement. There are various types of Colorado Defined-Benefit Pension Plan and Trust Agreements offered to different groups of employees, depending on their employment classification or membership in certain organizations. These include: 1. Colorado Public Employees' Retirement Association (ERA): This plan covers employees of state government agencies, local governments, schools, and other public entities in Colorado. It is one of the largest and most well-known defined-benefit pension plans in the state. 2. Colorado Statewide Death and Disability Plan: This plan provides benefits to the survivors of eligible public employees in the event of death or disability. It aims to financially support the employee's beneficiaries and dependents during challenging times. 3. Colorado State Troopers Retirement Plan: This plan is specifically tailored for the retirement needs of Colorado State Troopers, providing them with enhanced benefits and retirement options that recognize the unique risks and challenges associated with their occupation. 4. Colorado Judicial Retirement Plan: This plan encompasses judges and justices of the Colorado state court system, offering them specific retirement benefits commensurate with their position and service to the legal system. In summary, the Colorado Defined-Benefit Pension Plan and Trust Agreement is a range of retirement plans established by the State of Colorado to provide a secure income stream for its employees. These plans vary depending on the employee's classification and professional organization. The state understands the importance of providing robust retirement benefits to attract and retain talented individuals, as well as ensuring their financial well-being in their post-employment years.