Alameda California Defined-Benefit Pension Plan and Trust Agreement

• Category: Trusts - Business
• State: Multi-State
• County: Alameda
• 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 Alameda California Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement benefits program provided by the city of Alameda, California. This plan ensures financial security for Alameda's public employees upon retirement. The Alameda California Defined-Benefit Pension Plan and Trust Agreement is designed to offer a steady income to retired employees. It operates on a defined-benefit basis, meaning that predetermined monthly retirement payments are guaranteed to participants based on specific factors such as years of service, salary history, and age at retirement. This pension plan is managed by the Alameda City Employee's Retirement System (ACES). ACES oversees the administration and investment of pension funds to ensure the plan is sustainable and adequately funded. It works in collaboration with employees, employers, and investment professionals to maintain the long-term viability of the pension system. The Alameda California Defined-Benefit Pension Plan and Trust Agreement provides a range of benefits to retirees, including but not limited to: 1. Monthly retirement payments: Retired employees receive a fixed monthly payment for life, ensuring a steady income stream even after leaving active service. 2. Cost-of-living adjustments (Colas): To account for inflation and rising living costs, retirees may be eligible for periodic Colas, ensuring their purchasing power remains relatively stable over time. 3. Survivor Benefits: In the event of an employee's death, their surviving spouse or designated beneficiary may be entitled to receive a portion of the pension benefits, offering financial support to the family. 4. Disability Retirement: In case of career-ending disabilities, the plan includes provisions for disability retirement, enabling eligible employees to access retirement benefits earlier. It is worth mentioning that the Alameda California Defined-Benefit Pension Plan and Trust Agreement may have different variations or tiers based on the employee's job classification or the date they were hired. These variations, also known as "tiers" or "pension formulas," may have different benefit formulas and eligibility criteria. Specific tiers may have been implemented over time to align with changing economic conditions and ensure the sustainability of the plan. Participants in the Alameda California Defined-Benefit Pension Plan and Trust Agreement can count on a reliable source of retirement income, allowing them to enjoy a secure and worry-free retirement after years of service to the city of Alameda. With the plan's focus on financial stability and sustainable management, it provides peace of mind and long-term financial security for retirees.

The Alameda California Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement benefits program provided by the city of Alameda, California. This plan ensures financial security for Alameda's public employees upon retirement. The Alameda California Defined-Benefit Pension Plan and Trust Agreement is designed to offer a steady income to retired employees. It operates on a defined-benefit basis, meaning that predetermined monthly retirement payments are guaranteed to participants based on specific factors such as years of service, salary history, and age at retirement. This pension plan is managed by the Alameda City Employee's Retirement System (ACES). ACES oversees the administration and investment of pension funds to ensure the plan is sustainable and adequately funded. It works in collaboration with employees, employers, and investment professionals to maintain the long-term viability of the pension system. The Alameda California Defined-Benefit Pension Plan and Trust Agreement provides a range of benefits to retirees, including but not limited to: 1. Monthly retirement payments: Retired employees receive a fixed monthly payment for life, ensuring a steady income stream even after leaving active service. 2. Cost-of-living adjustments (Colas): To account for inflation and rising living costs, retirees may be eligible for periodic Colas, ensuring their purchasing power remains relatively stable over time. 3. Survivor Benefits: In the event of an employee's death, their surviving spouse or designated beneficiary may be entitled to receive a portion of the pension benefits, offering financial support to the family. 4. Disability Retirement: In case of career-ending disabilities, the plan includes provisions for disability retirement, enabling eligible employees to access retirement benefits earlier. It is worth mentioning that the Alameda California Defined-Benefit Pension Plan and Trust Agreement may have different variations or tiers based on the employee's job classification or the date they were hired. These variations, also known as "tiers" or "pension formulas," may have different benefit formulas and eligibility criteria. Specific tiers may have been implemented over time to align with changing economic conditions and ensure the sustainability of the plan. Participants in the Alameda California Defined-Benefit Pension Plan and Trust Agreement can count on a reliable source of retirement income, allowing them to enjoy a secure and worry-free retirement after years of service to the city of Alameda. With the plan's focus on financial stability and sustainable management, it provides peace of mind and long-term financial security for retirees.