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1900 West Loop South, Suite 1150
Houston, TX 77027

(713) 621-4700
info@glocpas.com

What is a Pension?

A retirement account that an employer maintains to give you a fixed payout when you retire.

 

Defined Benefit Pension Plan is a type of pension plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee’s earning history, tenure of service, and age rather than depending directly on individual investment returns.

 

The liability of the pension lies with the employer/sponsor that is responsible for making the decisions.

 

If an employee leaves the company before retirement, the benefits earned so far are frozen and held in a trust for the employee until retirement age or in some instances the employee is able to take away a lump sum value or transfer the value to another pension plan.

 

Because Employee Benefit Plans are highly regulated entities, special requirements and responsibilities apply. GLO CPAs is incredibly well-informed and experienced in handling defined pension plans and can help you with your plan.

 

“Defined Benefit Pension Plans” allow earnings to be taxed at a future time and used in a comprehensive way for estate planning. Let us show you how one can benefit you.

1900 West Loop South, Suite 1150
Houston, TX 77027

(713) 881-9114

(713) 557-0561

A full-service accounting firm...reach out today for all your financial planning needs.

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