What are post retirement cost-of-living increases (COLAs)?
These are small incremental increases that keep retirees’ benefits in line with inflation. A COLA is usually based upon the increase in the Consumer Price Index. Not all plans offer COLAs. 22. What is an early retirement subsidy? Early retirement subsidies can come in a variety of different forms and are sometimes offered for different reasons. An early retirement subsidy can be a package deal to encourage early retirement in an effort by the company or union to downsize their workforce or can be a bonus for completion of a certain amount of years of service. Not all plans offer early retirement subsidies. Return to the Top FAQs for Defined Contribution Plans (Qualified Domestic Relations Order) 23. What is a Defined Contribution Plan? A defined contribution plan is a pension plan which has an account specified for the individual employee. A defined amount is contributed to the plan by the individual, the employer or both. These plans are usually called 401(k) Plan, Savings Plan, Thrif
