Employee Sponsored Plans

The Jacobs Company Employee Sponsored Plans Qualified Retirement Plans

Summary Of Types Of Plans

The employer contributes an "actuarially determined amount" sufficient to pay each participant a fixed or defined benefit at his or her retirement. Methods of defining the benefit may be based on a flat percentage of compensation, a percentage which increases with years of service, a percentage which changes at certain compensation levels, etc.

This type of plan generally favors older employees, because more of the employer's contributions must go into his or her account to make certain that there will be enough to pay the promised (or defined) benefit at retirement age.

Defined Contribution Plans
Two Principal Types Of Plans

This document was last modified on July 27, 1999