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THA Retirement Plan (THARP) |
DEFINED BENEFIT PLANS
Traditional Pension Plan
Lifetime monthly benefit at retirement
Annual cost based on actuarial projections
Past-service credits allowed
Benefits may be off-set by social security benefits
Favorable to older employees and long service employees
Nondiscrimination rules generally apply to private sector employees
Benefits based on salary and years of service
Forfeitures reduce employer costs
Limited benefit distribution rules
Benefits insured by PBGC (governmental agency), if employer is a private entity
Assets held in tax exempt trust and invested by Trustees in stocks, bonds, and short-term cash management
Employer bears investment risk
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