New Mexico 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 New Mexico Defined-Benefit Pension Plan and Trust Agreement, commonly referred to as the New Mexico DB Plan, is a retirement savings arrangement provided by the state for its employees. It is a comprehensive and secure pension program designed to provide financial stability and retirement benefits to eligible participants. The New Mexico DB Plan operates under a trust agreement, which outlines the provisions, policies, and guidelines that govern the plan. It establishes the legal framework under which the benefits are administered, invested, and distributed to the plan participants. There are different types of New Mexico DB Plans available, each catering to specific groups of employees based on their profession or employer. Some notable types include: 1. New Mexico Educational Retirement Board (MERE) Plan: This plan covers employees working in the field of education, such as teachers, educational administrators, and other school staff. It ensures that education professionals can retire with a reliable source of income. 2. New Mexico Public Employees Retirement Association (ERA) Plan: This plan is designed for various public employees, including state and local government workers, law enforcement officers, firefighters, and municipal employees. It aims to support public employees in their retirement years by providing them with a stable income source. 3. New Mexico Judicial Retirement System (MRS) Plan: This plan caters specifically to judges and justices serving in the state's judiciary system. It offers comprehensive retirement benefits to ensure the financial well-being of judges during their retirement. These are just a few examples of the different New Mexico DB Plans available. Each plan may have specific eligibility criteria, contribution rates, and benefit formulas tailored to the unique needs of its participant group. The New Mexico DB Plan and Trust Agreement prioritize the long-term financial security of its members by pooling contributions from employees, employers, and the state government. These funds are prudently invested to generate returns, which are reinvested into the plan to fund future benefits. The fiduciaries responsible for managing the plan act in the best interest of the plan participants, following the guidelines set forth in the trust agreement. The New Mexico DB Plan and Trust Agreement provide retirement benefits that are calculated based on a formula that considers factors such as years of service, average salary, and other relevant variables. These benefits are generally paid out as a predetermined percentage of the participant's average salary during their highest-earning years. In summary, the New Mexico Defined-Benefit Pension Plan and Trust Agreement is a reliable and comprehensive retirement savings arrangement available to New Mexico employees across various sectors. Its multiple plans cater to specific employee groups, ensuring their financial well-being during retirement.

The New Mexico Defined-Benefit Pension Plan and Trust Agreement, commonly referred to as the New Mexico DB Plan, is a retirement savings arrangement provided by the state for its employees. It is a comprehensive and secure pension program designed to provide financial stability and retirement benefits to eligible participants. The New Mexico DB Plan operates under a trust agreement, which outlines the provisions, policies, and guidelines that govern the plan. It establishes the legal framework under which the benefits are administered, invested, and distributed to the plan participants. There are different types of New Mexico DB Plans available, each catering to specific groups of employees based on their profession or employer. Some notable types include: 1. New Mexico Educational Retirement Board (MERE) Plan: This plan covers employees working in the field of education, such as teachers, educational administrators, and other school staff. It ensures that education professionals can retire with a reliable source of income. 2. New Mexico Public Employees Retirement Association (ERA) Plan: This plan is designed for various public employees, including state and local government workers, law enforcement officers, firefighters, and municipal employees. It aims to support public employees in their retirement years by providing them with a stable income source. 3. New Mexico Judicial Retirement System (MRS) Plan: This plan caters specifically to judges and justices serving in the state's judiciary system. It offers comprehensive retirement benefits to ensure the financial well-being of judges during their retirement. These are just a few examples of the different New Mexico DB Plans available. Each plan may have specific eligibility criteria, contribution rates, and benefit formulas tailored to the unique needs of its participant group. The New Mexico DB Plan and Trust Agreement prioritize the long-term financial security of its members by pooling contributions from employees, employers, and the state government. These funds are prudently invested to generate returns, which are reinvested into the plan to fund future benefits. The fiduciaries responsible for managing the plan act in the best interest of the plan participants, following the guidelines set forth in the trust agreement. The New Mexico DB Plan and Trust Agreement provide retirement benefits that are calculated based on a formula that considers factors such as years of service, average salary, and other relevant variables. These benefits are generally paid out as a predetermined percentage of the participant's average salary during their highest-earning years. In summary, the New Mexico Defined-Benefit Pension Plan and Trust Agreement is a reliable and comprehensive retirement savings arrangement available to New Mexico employees across various sectors. Its multiple plans cater to specific employee groups, ensuring their financial well-being during retirement.