West Virginia 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 West Virginia Defined-Benefit Pension Plan and Trust Agreement, also known as the WV DB Pension Plan, is a retirement benefit program offered to state and local government employees in West Virginia. This comprehensive pension plan aims to provide financial security and a stable income source for retired public servants. The West Virginia Defined-Benefit Pension Plan and Trust Agreement is designed to ensure that employees who have dedicated a significant portion of their career serving the state or its local subdivisions can enjoy a secure retirement. This pension plan guarantees specific benefit payments to eligible participants based on a formula that considers their years of service, average salary, and age at retirement. There are several types of West Virginia Defined-Benefit Pension Plans and Trust Agreements available, depending on the specific occupation or government sector an employee belongs to. Some notable variations include: 1. State Employees Retirement System (SEES): This plan covers employees of state agencies, public colleges and universities, and their related entities. Participants enrolled in SEES make regular contributions throughout their careers, and their retirement benefits are determined by their years of service and final average compensation. 2. Teachers Retirement System (TRS): TRS is tailored specifically for teachers and certain educational professionals. It provides retirement benefits based on years of service, age, and final average compensation for eligible individuals employed in K-12 public schools, colleges, and universities. TRS participants contribute a percentage of their salary towards the plan. 3. ERA Law Enforcement Plan: This Defined-Benefit Pension Plan and Trust Agreement caters to law enforcement officers, correctional officers, and regional jail employees. It grants retirement benefits based on years of service and average final compensation, helping ensure the financial well-being of those who have served in hazardous and demanding roles within the criminal justice system. 4. ERA Municipal Police Plan: Designed exclusively for municipal police officers, the ERA Municipal Police Plan provides retirement benefits based on years of service and average final compensation. It aims to support officers who have dedicated their careers to ensuring the safety and security of West Virginia's communities. These are just a few examples of West Virginia Defined-Benefit Pension Plans and Trust Agreements, demonstrating the state's commitment to offering retirement security to its valued public servants. By providing a steady income stream during retirement, these plans aim to reward years of hard work and dedication while ensuring a stable financial future for public employees in West Virginia.