Missouri 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. A Missouri Defined-Benefit Pension Plan and Trust Agreement is a legal document that outlines the terms, conditions, and provisions for a retirement plan offered by the state of Missouri. This plan is designed to provide retirement benefits to eligible public employees who have contributed a set percentage of their salaries throughout their employment. The defined-benefit aspect of this plan means that the retirement benefits are predetermined based on an employee's length of service and final average salary. This ensures a guaranteed income stream for retirees, as opposed to a defined-contribution plan where the retirement benefits are based on employee and employer contributions as well as investment returns. The Missouri Defined-Benefit Pension Plan and Trust Agreement is administered by the Missouri State Employees' Retirement System (MOSES). It covers a wide range of public employees, including state employees, teachers, and certain politically appointed officials. There are different types of Missouri Defined-Benefit Pension Plans and Trust Agreements offered based on the employee's occupation and employer. Some commonly known plans include: 1. ISEP (Missouri State Employees' Plan): This plan serves state employees and certain employees of political subdivisions who are not teachers or public school employees. 2. ISEP 2000 (Missouri State Employees' Plan 2000): This plan was established in 2000 and covers state employees hired on or after January 1, 2011. It provides different benefits and contribution rates compared to the original ISEP. 3. Judicial Plan: This plan serves judges of the state and St. Louis County and circuit court clerks who are participants of MOSES. 4. Public Education Employee Retirement System (PEERS): This plan is specifically designed for full-time employees of public schools, community colleges, and universities in Missouri. It offers different benefit provisions from the state employee plans. Each plan has specific eligibility criteria, vesting schedules, retirement formulae, and contribution rates, which are detailed in the respective plan documents and trust agreements. These agreements also contain provisions related to disability benefits, survivor benefits, and other retirement-related considerations. It is important for active and potential participants to fully understand the Missouri Defined-Benefit Pension Plan and Trust Agreement, as it plays a crucial role in their long-term financial security and retirement planning. Reviewing the relevant documents, consulting with MOSES representatives, and seeking professional advice are recommended steps to ensure a comprehensive understanding of the plan's intricacies.

A Missouri Defined-Benefit Pension Plan and Trust Agreement is a legal document that outlines the terms, conditions, and provisions for a retirement plan offered by the state of Missouri. This plan is designed to provide retirement benefits to eligible public employees who have contributed a set percentage of their salaries throughout their employment. The defined-benefit aspect of this plan means that the retirement benefits are predetermined based on an employee's length of service and final average salary. This ensures a guaranteed income stream for retirees, as opposed to a defined-contribution plan where the retirement benefits are based on employee and employer contributions as well as investment returns. The Missouri Defined-Benefit Pension Plan and Trust Agreement is administered by the Missouri State Employees' Retirement System (MOSES). It covers a wide range of public employees, including state employees, teachers, and certain politically appointed officials. There are different types of Missouri Defined-Benefit Pension Plans and Trust Agreements offered based on the employee's occupation and employer. Some commonly known plans include: 1. ISEP (Missouri State Employees' Plan): This plan serves state employees and certain employees of political subdivisions who are not teachers or public school employees. 2. ISEP 2000 (Missouri State Employees' Plan 2000): This plan was established in 2000 and covers state employees hired on or after January 1, 2011. It provides different benefits and contribution rates compared to the original ISEP. 3. Judicial Plan: This plan serves judges of the state and St. Louis County and circuit court clerks who are participants of MOSES. 4. Public Education Employee Retirement System (PEERS): This plan is specifically designed for full-time employees of public schools, community colleges, and universities in Missouri. It offers different benefit provisions from the state employee plans. Each plan has specific eligibility criteria, vesting schedules, retirement formulae, and contribution rates, which are detailed in the respective plan documents and trust agreements. These agreements also contain provisions related to disability benefits, survivor benefits, and other retirement-related considerations. It is important for active and potential participants to fully understand the Missouri Defined-Benefit Pension Plan and Trust Agreement, as it plays a crucial role in their long-term financial security and retirement planning. Reviewing the relevant documents, consulting with MOSES representatives, and seeking professional advice are recommended steps to ensure a comprehensive understanding of the plan's intricacies.