Defined Contribution Plan Option Clause Samples
The Defined Contribution Plan Option clause establishes the availability of a retirement savings plan in which contributions are made to individual accounts for participants, rather than promising a specific benefit at retirement. Under this clause, both the employer and employee may contribute set amounts to the plan, and the final benefit depends on the investment performance of the account. This structure provides flexibility and portability for employees, while also limiting the employer's long-term financial obligations, thereby offering a clear and manageable approach to retirement planning.
Defined Contribution Plan Option. The defined contribution plan option is for all employees hired on or after July 1, 2000 and those employees hired before that date who elected to participate in that option. The defined contribution plan option provides the following benefits:
(1) The City will contribute to each participant’s account an amount equal to nine percent (9%) of the participant’s compensation.
(2) Participants are required to contribute six percent (6%) of their compensation (pre-tax) to their account.
(3) Participants are always one hundred (100%) vested in their contributions and shall be vested in the City contributions in accordance with the following schedule: 25% upon completion of four (4) years of service 50% upon completion of five (5) years of service 75% upon completion of six (6) years of service 100% upon completion of seven (7) years of service
(4) The Plan Administrator will be selected by the City’s Pension Committee. The terms and conditions of the defined contribution plan option are set forth in greater detail in the documents creating the defined contribution plan.
Defined Contribution Plan Option. The defined contribution plan option is for all employees hired on or after July 1, 2000 and those employees hired before that date that elected to participate in that option on or before December 31, 2001. The defined contribution plan option provides the following benefits:
1) The City will contribute to each participant’s account an amount equal to eight percent (8%) of the participant’s compensation.
Defined Contribution Plan Option. (a) Employees hired on or after July 1, 2010 will make an election of either a Defined Contribution Plan (DC) or a Defined Benefit Plan (DB) for retirees’ health plan benefits within ten (10) working days of the date of hire. An employee hired on or after July 1, 2010 who does not make an initial election within ten (10) working days shall be enrolled in the DC Plan. After completion of one year of service, an employee will have another opportunity to make an irrevocable election of either the DC or DB Plan. The Chapter Chair will be copied on letters to members informing them of their one year of employment and final decision on retirees’ health plan. This letter to employees shall be sent out at least two weeks prior to an employee’s one-year anniversary. Employees must make an election within ten
Defined Contribution Plan Option. The defined contribution plan option is for all employees hired on or after July 1, 2000 and those employees hired before that date who elected to participate in the defined contribution plan option. The defined contribution plan option provides the following benefits: The City will contribute to each participant’s account an amount equal to 8.5% of the participant’s compensation. Participants are required to contribute 5% of their compensation (pre-tax) to their account. Participants are always one hundred (100%) vested in their contributions and shall be vested in the City contributions in accordance with the following schedule: 50% upon completion of two (2) years of service 60% upon completion of three (3) years of service 70% upon completion of four (4) years of service 80% upon completion of five (5) years of service 90% upon completion of six (6) years of service 100% upon completion of seven (7) years of service The Plan Administrator will be selected by the City’s Pension Committee. The terms and conditions of the defined contribution plan option are set forth in greater detail in the documents creating the defined contribution plan.
Defined Contribution Plan Option. (a) Employees hired on or after July 1, 2010 will make an election of either a Defined Contribution Plan or a Defined Benefit Plan for retirees' health plan benefits within ten (10) working days of the date of hire. An employee hired on or after July 1, 2010 who does not make an initial election within ten (10) working days shall be enrolled in the Defined Contribution Plan. After completion of one year of service, an employee will have another opportunity to make an irrevocable election of either the Defined Contribution or Defined Benefit Plan. The Chapter Chair will be copied on letters to members informing them of their one year of employment and final decision on retirees' health plan. This letter to employees shall be sent out at least two weeks prior to an employee's one-year anniversary. Employees must make an election within ten (10) working days of his/her anniversary date. If an election is not made within this period of time, the employee's initial election at date of hire will remain status quo. For those changing from a Defined Contribution to Defined Benefit Plan, the funds contributed by the employer will revert back to the City. For those changing from a Defined Benefit to Defined Contribution Plan, employer contributions will be made from the date of hire of the employee without the additional 4 percent interest applied.