TRIBAL NATIONS Pension Plan and 401K Plan

Ensure the success of whatever plan is best for your organization.

When someone mentions retirement plans most people think either Pension Plan or 401k Plan. There is a crucial difference between these two types of plans and that difference lies in who is responsible for the outcome for the participants.

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In a Pension Plan, otherwise known as a defined benefit plan, the responsibility of the outcome lies with the employer as they promise to make payments after retirement.

In a 401k Plan, otherwise known as a defined contribution plan, the responsibility solely lies with the participants as each individual must choose from among the investments made available to them by their employer.

The other difference is in the administration and actuarial monitoring of a plan. A pension plan requiring more attention.

If being part of a local pension plan is not available to you there is a way to create a pension plan of your own. This is called A Non-Qualified Deferred Compensation Defined Benefit Plan. It can be designed to an organization’s specific needs.

If a 401k plan is more in line with your organization needs, it also can be designed to your organization’s specifications.

All plans require several individuals working in tandem within their area of expertise to service the plan: an actuary, a third-party administrator and a financial professional. Together these entities help to ensure the success of whatever plan is best for your organization.