Defined Benefit Plans
Massachusetts Public Employee Hampshire County Retirement System |
Defined Contribution Plans
401(k)’s, 457(b)’s, 403(b)’s, IRA’s, Deferred Comp., 458’s, etc… |
Benefit Formula = Age, Service, & Average Salary |
Benefit Formula = Age, $ Contributed, & Investment Earnings |
Benefit Amount = % of Salary (Not based on Contributions or Investment Gains/Losses) |
Benefit Amount = % of Account Balance (Based on Contributions plus Investment Gains/Losses) |
Benefit Amount guaranteed by law (not based on account balance) |
Benefit Amount not guaranteed (based on account balance) |
Monthly Payments guaranteed for Lifetime (cannot outlive benefit payments) |
Monthly Payments not guaranteed for lifetime (can outlive benefit payments) |
Cost-of Living provisions |
No Cost-of-Living provisions |
Mandatory Participation |
Participation may be voluntary |
Mandatory Contribution Rate |
Contribution rate may be voluntary |
Disability Provisions |
No Disability Provisions |
Trustee Directed Investment |
Individual Directed Investment |
Investment Risk = Employer |
Investment Risk = Participant |
No administrative fees to participant |
Administrative fees charged to participant |
No Liens or Attachments allowed on contributions of actively employed members |
No guaranteed protection from Liens or Attachments |
Limited Liens or Attachments allowed for Child Support and Domestic Relations Orders |
No guaranteed protection from Liens or Attachments |
For more information click here
Appears in: General FAQ , Active Members