Pension Plans
Providing for Your Employees' Futures

Through a partnership with UVEST Financial Services, the Financial Services Group offers access to traditional pension plans which pay retirees a fixed amount based on the munber of years of service and salary history.††† These are employer-sponsored retirement plans in which the employer is responsible for the full amount of the plan. Pension plans are generally suitable for business with more than ten employees. Traditional pension plans give the employer an attractive vehicle to attract and retain employees.

Traditional pensions are commonly referred to as Qualified Plans. There are two types of plans: Defined-Benefit and Defined-Contribution. Defined-Benefit Plans are funded by employer contributions and are guaranteed by the Pension Benefit Guaranty Corporation (PBGC). Employee sponsored retirement plans such as 401(k), 403(h) and 457 plans are called Defined-Contribution plans. Defined-Contribution plans are funded in large part by employee contributions. As a result these plans are not guaranteed by the PBGC.

	Highlights Below > Benefits Your Business Will Receive > Fast Facts > Other Options

Benefits Your Business Will Receive

• Increased flexibility in designing qualified plans
• Increased contribution and deductions limits in some cases

	Fast Facts
	Defined Benefit Plan   Maximum Contribution Amount needed to provide an annual benefit not larger than the smaller of $160,000 or 10% of the participants average compensation for his or her highest three consecutive calendar years   Maximum Deduction Based on actuarial assumptions and computations
	Defined Contribution Plan   Maximum Contribution Money purchased — smaller of $40,000 or 100% of the participant's compensation Profit sharing — smaller of $40,000 or 100% of participant's compensation   Maximum Deduction Money purchased — 25% of all participant's compensation Profit sharing — smaller of $40,000 or 100% of participant's compensation

Other options
Instead of offering a 401(K) plan, smaller companies may offer their employees one of the following types of salary reduction plans. Like 401(K) plans, they offer the same tax advantages.

• Simplified Employee Pension (SEP) Plans
• Savings Incentive Match Plans for Employee (SIMPLE) Plans