I understand that ERFC and ERFC-2001 are Defined Benefit Plans. What does that mean?
A defined benefit retirement plan provides eligible members a specified monthly benefit at retirement. Under a defined benefit plan, a set formula is established and used to compute the retirement annuity. The amount of the benefit payments is not a function the investment returns. ERFC and ERFC-2001 are defined benefit retirement plans, qualified under section 401(a) of the Internal Revenue Code. Back to Top • Does Social Security affect my retirement benefits? Social Security benefits do not affect benefit payments provided to members hired on or after July 1, 2001, covered under the ERFC 2001 Plan structure. ERFC, the legacy plan, which covers members hired prior to July 1, 2001, was designed specifically as an early retirement plan to supplement the benefits provided by VRS and Social Security. Under the ERFC benefit structure, members selecting the standard benefit payment type receive a lifetime benefit amount plus an additional temporary benefit, which is paid only from the time
A defined benefit retirement plan provides eligible members a specified monthly benefit at retirement. Under a defined benefit plan, a set formula is established and used to compute the retirement annuity. The amount of the benefit payments is not a function of the investment returns. ERFC and ERFC-2001 are defined benefit retirement plans, qualified under section 401(a) of the Internal Revenue Code. Back to Top • Does Social Security affect my retirement benefits? Social Security benefits do not affect benefit payments provided to members hired on or after July 1, 2001, covered under the ERFC 2001 Plan structure. ERFC, the legacy plan, which covers members hired prior to July 1, 2001, was designed specifically as an early retirement plan to supplement the benefits provided by VRS and Social Security. Under the ERFC benefit structure, members selecting the standard benefit payment type receive a lifetime benefit amount plus an additional temporary benefit, which is paid only from the t
