Plan Design
Plan Design is an ongoing process for your plan. Initial Plan Design is important for a start up plan in that we will look at the makeup of your employees as well as your goals. We can discuss safe harbor contributions and different profit sharing formulas including those that are integrated with social security, age-weighted or cross tested/new comparability.

Plan Design is also an evolutionary process in that we pro-actively review your current plan design and ideas for increasing plan participation, providing more contributions to the employer or adding Safe Harbor provisions to help with the ADP/ACP tests.

Our Service
Our service model allows us to provide personalized service to local clients near our offices in the Phoenix, Arizona metropolitan area or our many clients outside of our area. Our service model also allows us to work hand-in-hand with you, your Financial Advisor, your Accountant or their consultants in the set-up and ongoing administration of your plan.

  • Actuarial Services
Defined Benefit Plan

A traditional defined benefit plan promises to pay participants a specified monthly income when they retire.  The benefit is typically based on the participant’s pay and years of service.  Defined benefit plans tend to favor older, higher-paid employees who are often the key executives.  The plan sponsor is required to make contributions and make sure that enough money is in the plan to pay the benefits.  An actuary determines the annual contribution based on actuarial assumptions including future pay increases, investment performance, years until retirement and life expectancy.

Contributions to a Defined Benefit Plan are mandatory and must satisfy minimum standards. In addition, the contribution level is often higher than other types of retirement plans. Contribution requirements are based upon the plan terms, demographic/census information and asset performance.

Cash Balance Plans

Cash Balance plans allow plan sponsors to have larger tax deductions and accelerated retirement savings compared to profit sharing plans.  Cash Balance plans are a type of defined benefit plan that specify both the contribution to be credited to each participant and the interest to be credited to those contributions.  The result is a hypothetical participant account that resembles a 401(k)/profit sharing plan.

An actuary is required to perform annual valuations and determine contribution amounts, which may not exactly equal the hypothetical contributions.  Contribution requirements are based upon the plan terms, demographic/census information and asset performance.

For more information contact:

John Conway
Business Development

Sunwest Pensions
P.O. Box  7850
Tempe, AZ 85282
Phone: 866-968-5363 Extension 105

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