Since 1951, Hughes has provided a retirement pension plan for its employees. At issue in this litigation is the use by Hughes of surplus assets from the Contributory Plan.
Regarding this, what is an excess pension plan?
A plan maintained by an employer solely to provide certain employees with benefits that exceed the limits that apply to qualified retirement plans under Section 415 of the Internal Revenue Code (IRC).
Besides, what is a frozen retirement plan?
What Is a Pension Freeze? When a pension is frozen, some or all workers who are currently covered by the plan will no longer see the value of their pensions increase. Any new employees not already covered by the plan will not be allowed to participate in the plan at all.
Is a SERP a qualified plan?
A supplemental executive retirement plan (SERP) is a set of benefits that may be made available to top-level employees in addition to those covered in the company’s standard retirement savings plan. A SERP is a form of a deferred-compensation plan. It is not a qualified plan.
What is a Section 415 plan?
Named for section 415 of the Internal Revenue Code (IRC), the 415 limit reflects the maximum allowable contributions to a qualified retirement savings plan in a given year. The maximum employee contributions are dictated by section 402(g), but the overall contributions from all sources are limited by section 415.
When can I retire from Boeing?
(Note: while most people would pay a tax penalty for taking money from their 401(k) before age 59½, the Boeing 401(k) allows retired individuals to pull money as early as 55 with no tax penalty.) At 60, they turn on their pension, supplementing that pension income with money from the 401(k) as needed.
Are Boeing pensions at risk?
During Boeing’s April 27 shareholders meeting, management was asked: “Is there any risk to Boeing retiree pensions, given the current financial circumstances of the company?” CEO David Calhoun replied: “No, there’s nothing I see in our future that would put risk into the pension plans.”
Do Boeing employees have a pension?
Boeing has paid just over $10 billion into its pension funds in the past four years, including $3.45 billion last year. … In last year’s contract negotiations with Boeing, SPEEA agreed to switch new hires from the traditional pension to a defined-contribution plan, but retained the current pension for existing employees.