What type of retirement plan is the CORP and how is it administered?
The CORP is a governmental retirement plan qualified under 401 (a) of the Internal Revenue Code. It is a “defined benefit plan”, which means your pension is determined by a formula, not by the amount of money in your account. In addition, the CORP is known as an agent multiple-employer retirement plan. This means that separate accounts are kept for each employer that is in the Plan. Benefit payments are not “shared” by all employers in the Plan. Monies in the entire Plan are pooled for investment purposes, but benefits and refunds are paid for by each employer only from the employers separate account in the CORP.
