The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retirement

URL:  https://boards.fool.com/that-depends-on-the-plan-today-all-private-34994737.aspx

Subject:  Re: Defined Benefit Plan (Pension) Date:  12/6/2021  3:10 PM
Author:  BruceCM Number:  347 of 354

That depends on the plan.

Today, all private (non-government) defined benefit plans that fall under ERISA, that I've ever heard of, use a benefit formula that takes into account your credible years of service, often called the 'participation years' of service, some measure of your salary (usually average of the final 3 years, although this can vary) and some contribution percent, typically 1 to 2%. Some plans put a max on the number of credible years while some limit credible years to some maximum age, usually 70.

Government plans can vary state-to-state.

BruceM
Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us