It is similar to defined benefit plan in that the annual contribution is determined by a formula to calculate the amount needed each year to accumulate (at an assumed interest rate) a fund sufficient to pay a projected retirement benefit, the target benefit, to each participant upon reaching retirement. It is similar to a defined contribution plan in that the plan does not guarantee any benefit will be paid. The plan's only obligation is to pay whatever benefit can be provided by the amount in the contributor’s account. The actual earnings on the individual accounts may differ from the estimated earnings used in the assumptions and the investment performance of that account through the years.
Triple play: Merger of utilities presents opportunity to combine plans, enhance benefits and outsource administration.(Detroit Edison Co.)
Jun 15, 2001; When the largest electric company and second largest gas utility in Michigan decided to merge in late 1999, one of the first...