The traditional thought about the pension plans is that these are the ‘defined-benefit' plans. Any variants to these plans are not viewed as the real-pension plans. There are many new retirement plans but the traditional ones have still not lost their appeal. Many would still bet on these as the best pension plan.

The benefit that is given under the traditional pension plans is predefined and guaranteed to be given. It is calculated on the basis of a fixed formula and is not dependent on the return on investments, you will continue to receive the amounts throughout your and, more often, your spouse's lifetime as well.  One can invariably ask which types of organizations prefer having these plans to the others. Or, why do organizations prefer these traditional pension plans over the others? The answer is all those companies who want their employees to stay with them for a long time prefer opting for these plans. This is because these plans are generally not portable and therefore, are more suited for organizations having a less mobile workforce. These are good for the organizations image as well since the employees believe that the organization is serious about providing them a lifetime income.

Islip + Company CPAs offer personalized service to help you with these issues.  Since 1958, we have successfully worked with the IRS and the FTB helping our clients stay in compliance of the tax laws and pay the minimum amount due.  With Offices in Sacramento and Auburn as well as internet we are able to deliver premium service nearly anywhere...without premium pricing. "It's not just about the numbers... it's what's behind the numbers that counts". Give us a call or send us an email 916-488-1900 Sacramento, 530-746-3020 Auburn or  This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

These pension plans are brought out both by the private sector and the public sector. The private sector plans generally do no have contributions from the employee but the public sector employees do contribute to the extent of 5% of their salary. Also, the public sector traditional best pension plan may replace the social security system. Thus, the employees will get higher benefits under the pension to cover for the social security payments. Those public sector employees who also pay social security taxes, their pension payable is arrived at after multiplying their number of years in service with 1.8% to get the amount in terms of percentage of salary.

Traditional plan is considered best pension plan for another reason that these are protected, with certain limitations, by the Pension Benefit guarantee Corporation ( PBGC). If these plans have provisions for early retirement of the employees, then the payments are reduced since these would now be paid for a longer period of time. So, it is not easy to judge which the best pension plan is. All depends on the requirements of the individuals and organizations.

We have been helping and advising california pension plan clients since 1958.  Contact Islip + Company, CPAs, Sacramento and Auburn accountants and tax preparers for a free one hour consultation.  Your consultation can be on line as well as in person where you can meet with an accountant, tax preparer or CPA that best suites your needs.