Retirement

Save For Your Future

Our retirement offerings have been the core of Associated Benefits Corporation since our beginning. We understand that creating a sustainable future is a driving force for cooperatives, and we recognize the weight these benefits carry in employee recruitment and retention. 

We offer a variety of retirement plans that can be customized to best fit your cooperative. By partnering with industry leaders to fulfill these benefits alongside our highly qualified ABC team, you can feel confident that your employees and their investments are well taken care of.

Defined Benefit Pension Plans

ABC administers two pension plans for the cooperative system: The Contributory Retirement Plan for Cooperatives and The Noncontributory Retirement Plan for Cooperatives. These pension plans have been a core of our service offerings since the 1950s, and we’ve adapted them over time to meet the evolving needs of cooperatives and their employees. 

We work with our legal counsel, trustee, actuaries and discretionary money managers to maintain our pension plans’ status as leaders in the industry. We offer a variety of pension distribution options to fit a wide range of employee circumstances, and we’re happy to walk through these options with your team to help them choose the right plan for them.

Our pension plans also come with access to RetirementFocus, a secure, easy-to-use platform that helps employees track their benefits, model retirement scenarios and plan ahead—all in one place.

Market Rate Cash Balance Plan

The latest addition to our retirement offerings is the Market Rate Cash Balance Plan: a modern, pension-like retirement solution designed to help reduce market volatility and stabilize funding for today’s cooperatives and their teams. 

This flexible, transparent plan gives employees peace of mind for the future while helping co-ops attract and retain top talent by combining market-based growth with guaranteed security. 

The plan is fully funded by the employer, making it a true added benefit for your team. Investments are managed by top-tier professionals at October Three.

Each employee has a notional account that grows in two ways: 

  • Employer Contributions: A percentage of salary that grows with years of service.
  • Interest Credits: Tied to market performance and offers the potential for greater growth over time.

Employees can easily track their account value, and the account is portable within certain limits, giving employees flexibility if they change jobs. Employees can tailor their retirement strategy to their lifestyle, goals and risk tolerance

The Market Rate Cash Balance Plan is beneficial for employees and a smart move for cooperatives. Built with input from cooperatives, this plan modernizes retirement planning while preserving the legacy of traditional pensions.

When it comes time to retire, the flexibility continues, with multiple payout options:

  • Lump-Sum Payment: Roll the funds into a qualified retirement plan like an IRA.
  • Guaranteed Lifetime Income: Steady monthly payments for life, often at a lower cost than comparable annuities.

(401)k Plan

ABC developed the 401(k) Thrift Plan for Cooperatives in 1986, and the continued improvements guided by our legal counsel, trustee and investment advisors help this plan remain a leader in the industry. 

Bringing nearly 100 cooperatives together, our members can access top-quality shares/funds at the lowest possible cost. Using this plan design, our members retain more of their hard-earned money for retirement.

We utilize Principal as the trustee and recordkeeper for 401(k) plans, and their resources are readily available to your team. Plan participants can log into their online Principal account at any time to view their account details.

Non-Qualified Retirement Plans

Non-qualified plans give employers flexibility to customize benefit arrangements for key employees, helping with recruiting and retention. 

ABC offers non-qualified supplemental pension plans recognizing wages over the IRS qualified plan limits, but still mirroring the benefit formula of the qualified pension plan. ABC also offers deferred compensation programs that allow key employees to defer compensation into a tax-deferred account until retirement. 

Employers can also make discretionary contributions into key employees’ accounts. Non-qualified retirement plans are governed by Section 409A of the Internal Revenue Code.

Get Started

Our highly-qualified ABC retirement team brings 40+ years of combined experience, ensuring that your employees are well taken care of and have effective resources to answer their questions.