As a participant in Northern California Plasterers, you can participate in two pension plans: the Northern California Plastering Industry Pension Plan, which is a defined benefit pension plan, and the Plasterers Local 66 Supplemental Pension Trust, a defined contribution pension plan. These plans operate very differently.
Who Manages the Defined Benefit and Defined Contribution Pension Plans?
Both the Defined Benefit and Defined Contribution pension plans are very carefully managed by Boards of Trustees, with equal representation from labor and management. The Plans employ many experienced professionals to help them administrate and safeguard your Pension funds. Expert services are provided by actuaries, investment monitors, investment managers, attorneys and auditors, as well as the administrator.
The Defined Benefit Pension Plan
This is a traditional pension plan, the type that most people associate with retirees who receive a monthly pension check. There is enormous peace of mind knowing that every month, month after month and year after year, you can expect a pension benefit check to land in your bank account.
The Defined Contribution Pension Plan
This is an individual account plan – in other words, you have an account in your name set up in the Plan, funded by employer contributions. Your account reflects every hour that you work. Investment earnings of the Plan are distributed to all accounts quarterly. Your Defined Contribution Plan statement lets you know exactly what your account balance is, and how the fund has performed. This information serves as a valuable tool to help you plan for your retirement future.