Chicago Illinois Defined-Benefit Pension Plan and Trust Agreement

• Category: Trusts - Business
• State: Multi-State
• City: Chicago
• 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 Chicago Illinois Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan facilitated by the city of Chicago, Illinois, for its eligible employees. This type of pension plan offers a specific monthly benefit amount to employees upon their retirement, based on a predetermined formula considering factors like years of service and final average salary. The Defined-Benefit Pension Plan and Trust Agreement ensures that Chicago employees, who have participated in the plan for an established period, receive a guaranteed income for the remainder of their lives. This structure provides a sense of financial security and stability, making it one of the most sought-after retirement plans. There are various types of Chicago Illinois Defined-Benefit Pension Plan and Trust Agreements, each tailored for specific groups of employees: 1. General Employees' Annuity and Benefit Fund: This plan encompasses employees in various municipal, non-uniformed positions across different departments in the city. These may include administrative roles, clerical jobs, and other non-uniformed positions within the Chicago government. 2. Laborers' and Retirement Board Employees' Annuity and Benefit Fund: This particular plan is designed for city workers employed under the Chicago Department of Water Management, Chicago Park District, and certain laborers within Cook County. It caters to employees involved in physically demanding roles, such as construction workers, sanitation workers, water management staff, and more. 3. Policemen's Annuity and Benefit Fund: This plan is exclusively for active and former sworn members of the Chicago Police Department. It ensures that police officers receive a stable income during their retirement years to support their financial needs after dedicating their careers to public service and safety. 4. Firemen's Annuity and Benefit Fund: Similar to the Policemen's Annuity and Benefit Fund, this plan caters specifically to active and former members of the Chicago Fire Department. It guarantees firefighters a secure income stream when they retire, acknowledging their commitment to protecting the city and its residents. These different types of Defined-Benefit Pension Plan and Trust Agreements are available to eligible employees based on their respective employment categories. By offering these tailored retirement plans, the city of Chicago acknowledges the unique demands and risks associated with each profession, ensuring that employees can enjoy a fulfilling post-work life.

The Chicago Illinois Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan facilitated by the city of Chicago, Illinois, for its eligible employees. This type of pension plan offers a specific monthly benefit amount to employees upon their retirement, based on a predetermined formula considering factors like years of service and final average salary. The Defined-Benefit Pension Plan and Trust Agreement ensures that Chicago employees, who have participated in the plan for an established period, receive a guaranteed income for the remainder of their lives. This structure provides a sense of financial security and stability, making it one of the most sought-after retirement plans. There are various types of Chicago Illinois Defined-Benefit Pension Plan and Trust Agreements, each tailored for specific groups of employees: 1. General Employees' Annuity and Benefit Fund: This plan encompasses employees in various municipal, non-uniformed positions across different departments in the city. These may include administrative roles, clerical jobs, and other non-uniformed positions within the Chicago government. 2. Laborers' and Retirement Board Employees' Annuity and Benefit Fund: This particular plan is designed for city workers employed under the Chicago Department of Water Management, Chicago Park District, and certain laborers within Cook County. It caters to employees involved in physically demanding roles, such as construction workers, sanitation workers, water management staff, and more. 3. Policemen's Annuity and Benefit Fund: This plan is exclusively for active and former sworn members of the Chicago Police Department. It ensures that police officers receive a stable income during their retirement years to support their financial needs after dedicating their careers to public service and safety. 4. Firemen's Annuity and Benefit Fund: Similar to the Policemen's Annuity and Benefit Fund, this plan caters specifically to active and former members of the Chicago Fire Department. It guarantees firefighters a secure income stream when they retire, acknowledging their commitment to protecting the city and its residents. These different types of Defined-Benefit Pension Plan and Trust Agreements are available to eligible employees based on their respective employment categories. By offering these tailored retirement plans, the city of Chicago acknowledges the unique demands and risks associated with each profession, ensuring that employees can enjoy a fulfilling post-work life.