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WHAT WE OFFER

DEFINED BENEFIT

Benefits Made Easy

Associated Benefits Corporation (ABC) provides administrative and consulting services for employee benefit plans to the cooperative system.

A not-for-profit corporation, ABC is a full-service provider of 401(k) plans and defined benefit pension plans. We also manage employee health and welfare plans including life, medical, dental and vision insurance, along with long-term disability insurance and flexible benefit plans.

Learn More About Defined Benefit Pension

Associated Benefits Corporation (ABC) administers two pension plans for the cooperative system—The Contributory Retirement Plan for Cooperatives and The Noncontributory Retirement Plan for Cooperatives. The cooperative system has offered these pension plans as part of their employee benefit package since the 1950s.

We work with our legal counsel, trustee, actuaries and discretionary money managers to make this plan a leader in the industry.

ABC’s highly-trained staff can answer any questions employers or employees may have regarding their pension plans. We’re available to meet in-person or by telephone for an in-depth discussion.

Looking to change your beneficiary? click here

Select the right pension distribution option

Selecting a pension distribution option may be one of the biggest decisions to make before commencing retirement. No single pension distribution option is the same. You should consider a number of different factors before selecting an option, including:

  • Spouse’s retirement benefits
  • Other retirement savings
  • Health/life expectancy
  • Healthcare costs
  • Post-retirement taxes

ABC has a dedicated staff who can answer any questions that may arise. Once you decide when you’ll retire, ABC staff will sit down with you and your family to clearly explain each of the distribution options listed below. If you have additional questions, please call us at 1-800-747-4421.

Life Only

The life only option only covers the employee for his/her lifetime

Life – 5 years guaranteed
Life – 10 years guaranteed
Life – 15 year guaranteed

This option will only cover the employee. Spouse or beneficiaries would receive remainder of guarantee.

Joint & survivor 100%
Joint & survivor 75%
Joint & survivor 66%
Joint & survivor 50%

This option would cover the employee for lifetime as well as the spouse for their lifetime. All joint and survivor options are 10 years guaranteed.

15 years only
10 years only
5 years only

In this option, spouse or beneficiaries would receive the remaining payments.

Pension example

Employee and spouse both age 65

Employee has 20 years of service

Highest 5 consecutive years of wages: $3,750/month

Benefit formula = 1.10%

Employee Monthly Benefit Spouse Monthly Benefit
Life ONLY $825.00
Joint & Survivor 100% $687.53 $687.53
Joint & Survivor 75% $717.42 $538.06
Joint & Survivor 66% $727.96 $485.33
Joint & Survivor 50% $750.02 $375.01
Life with 15 Years Guaranteed $694.52
Life with 10 Years Guaranteed $751.47
Life with 5 Years Guaranteed $802.41
15 Years Only $938.16
10 Years Only $1275.59
5 Years Only $2,263.03