Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement

• Category: Trusts - Business
• State: Multi-State
• City: Phoenix
• 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 Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement is a retirement plan specifically designed for Phoenix city employees. This pension plan is a defined-benefit plan, which means that the retirement benefit amount is predetermined based on factors such as years of service and salary history. The primary objective of the Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement is to ensure that employees have a secure and reliable income stream during their retirement years. The plan is funded by contributions from both the employee and the city government, as well as investments made by the pension fund. There are different types of defined-benefit pension plans available in Phoenix, Arizona, such as: 1. General Employees' Retirement System (GETS) — This plan covers most non-uniformed, civilian employees of the city, including administrative staff, technicians, and other support personnel. 2. Phoenix Police Pension Plan — This plan is specifically designed for Phoenix Police Department employees, including police officers, detectives, and other law enforcement personnel. 3. Phoenix Firefighters' Retirement System (FRS) — This plan caters to the retirement needs of Phoenix Fire Department personnel, including firefighters, paramedics, and other emergency response staff. The Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement offers several key features. Firstly, it provides a guaranteed retirement benefit that is not subject to market fluctuations or investment performance. Secondly, it offers a cost-of-living adjustment (COLA) to help pensioners cope with inflation during their retirement years. Additionally, the plan includes provisions for disability retirement and survivor benefits to ensure financial security for employees and their families in case of unforeseen circumstances. The plan's trust agreement is a legally binding document that outlines the responsibilities and duties of the pension fund trustees. It establishes guidelines for investment strategies, contribution rates, and benefit calculations, ensuring transparency and accountability in the administration of the pension plan. In summary, the Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan designed to provide financial security for city employees in their old age. Through various types of pension plans, it aims to meet the unique needs of different employee groups, ensuring a dignified and comfortable retirement for Phoenix public servants.

The Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement is a retirement plan specifically designed for Phoenix city employees. This pension plan is a defined-benefit plan, which means that the retirement benefit amount is predetermined based on factors such as years of service and salary history. The primary objective of the Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement is to ensure that employees have a secure and reliable income stream during their retirement years. The plan is funded by contributions from both the employee and the city government, as well as investments made by the pension fund. There are different types of defined-benefit pension plans available in Phoenix, Arizona, such as: 1. General Employees' Retirement System (GETS) — This plan covers most non-uniformed, civilian employees of the city, including administrative staff, technicians, and other support personnel. 2. Phoenix Police Pension Plan — This plan is specifically designed for Phoenix Police Department employees, including police officers, detectives, and other law enforcement personnel. 3. Phoenix Firefighters' Retirement System (FRS) — This plan caters to the retirement needs of Phoenix Fire Department personnel, including firefighters, paramedics, and other emergency response staff. The Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement offers several key features. Firstly, it provides a guaranteed retirement benefit that is not subject to market fluctuations or investment performance. Secondly, it offers a cost-of-living adjustment (COLA) to help pensioners cope with inflation during their retirement years. Additionally, the plan includes provisions for disability retirement and survivor benefits to ensure financial security for employees and their families in case of unforeseen circumstances. The plan's trust agreement is a legally binding document that outlines the responsibilities and duties of the pension fund trustees. It establishes guidelines for investment strategies, contribution rates, and benefit calculations, ensuring transparency and accountability in the administration of the pension plan. In summary, the Phoenix Arizona Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement plan designed to provide financial security for city employees in their old age. Through various types of pension plans, it aims to meet the unique needs of different employee groups, ensuring a dignified and comfortable retirement for Phoenix public servants.