Self-Funded Defined Benefit Plan (pension)

Self-funded defined benefit pension plans are funded by individuals instead of employers. The individual invests money to meet a certain benefit amount in the future. The returns on the investments will fund the future benefits to be paid to the individual. If the investments do not perform as well as expected, the required contribution amounts will increase.

At retirement, participants often roll their balances into IRAs or purchase annuities; however, continued participation in the plan is possible as well. 

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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