Originally Posted by
kronan
A Defined Benefit plan is an IRS term.
What it requires is annual reporting via a form 5500.
It requires a trust fund.
It requires a fiduciary duty for those individuals/businesses managing it.
The fact that a Variable Benefit Plan requires some of the same things as a traditional Defined Benefit plan does not make it a traditional Defined Benefit plan, The trust fund for my kids is managed by an entity with a fiduciary duty -- that doesn't make it a Defined Benefit Plan.
Originally Posted by
kronan
The simple fact is, that as defined, an individual pilot can predict the minimum benefit he or should would accrue at retirement.
That value would be 2% of pensionable earnings up to the Defined Contribution Cap if the PSPP proposal became reality.
1) Do you know what the "Defined Contribution Cap" will be 5 years from now? 10? Year after next? It varies, doesn't it?
2) Thank you for admitting that the so-called "Defined Benefit Plan" is subject to the IRS Defined
CONTRIBUTION compensation limit. I didn't see that feature listed above in your "features of Defined Benefit plans" list.
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