RETIREMENT SOLUTIONS
Defined Benefits Actuarial Services
Actuarial services for defined benefit & cash balance retirement plans.
As part of Daybright consulting, administration and compliance services, we also offer actuarial services to defined benefits and cash balance retirement plans.
A defined benefits retirement plan refers to a specific type of plan where you, the employer, promise to pay a predetermined benefit to eligible employees upon retirement. The benefit is typically based on factors such as years of service and final average salary. These plans provide a specific monthly benefit upon retirement for each eligible employee.
A cash balance retirement plan is a type of defined benefit plan with some unique features. Cash balance plans are maintained on an individual account basis. Instead of using final average salary, cash balance plans credit participants’ accounts with a set percentage of their yearly compensation, plus interest. The account balance grows over time, aiming to meet a specific balance at retirement.
While defined benefits plans provide a fixed monthly benefit based on salary and service, cash balance plans maintain a hypothetical account balance that grows with contributions and interest credits. Cash balance plans offer flexibility and no contribution limits, making them attractive for certain employers and employees.
Daybright plays a crucial role in ensuring financial stability and risk management for your defined benefits and cash balance plans. Actuarial services provide guidance, valuation, projection analysis, and other advice to your plan’s trustees and you, all to make sure your plan’s assets and liabilities are on track to ensure that current and future payment or death benefits are available to participants.