PPG Retirement Plan Services Limited offers retirement plans such as defined contribution plans and defined benefit plans, according to the company website. The company offers these services as a third-party administrator and focuses on federal regulations, retirement plans and its clients' plans.Continue Reading
Under a defined contribution plan, there exists a defined amount that companies contribute and a defined allocation to employees. Future employee retirement benefits are subject to the employer contributions, investment results and forfeiture allocations made each year, notes PPG. The company offers three retirement plans under this bracket: profit sharing plans, 401(k) plans and new comparability plans.
A defined benefit plan specifies a monthly amount payable to the employee upon retirement. Only the employer contributes to a defined benefit plan, regardless of the earnings or profits made, explains PPG. The employee's retirement benefits depend on the contributions made and the years of service. The plan may integrate Social Security, consequently reducing the employee's benefits depending on the Social Security benefits.
Cash balance plans are hybrid plans under the defined benefit plan although they resemble a defined contribution plan. This plan expresses an employee's benefit as a hypothetical account balance rather than a monthly benefit, says PPG. The virtual account receives a percentage of compensation annually and an interest credit specified by a recognized index.Learn more about Financial Planning