Advantages of a Defined Benefit Plan
- In a MEPP, both the benefits and the contributions are defined.
- This type of plan clearly defines the amount of retirement income to be paid to the member of the plan at a certain time, such as at age 65.
- With a Defined Benefit Plan, you can estimate, in advance, what your pension will be.
- You also have the security of receiving a regular monthly income for the rest of your life.
- You don't have to worry about making investment decisions or tracking investments because highly qualified investment professionals are doing it for you.
- Pension income is based on the total number of hours that were contributed into the plan throughout your Covered Employment and the hourly rate at which those hours were contributed by your employer – the more you work, the higher amount of pension you will receive.