Defined Benefit Pension Plans (not subject to Alabama tax)

Gregory J. Cook, EA, CPA+
Accredited Tax Advisor
Past President Alabama Society of Enrolled Agents
Past President Alabama Association of Accountants

For tax years beginning January 1, 1991, any benefits received from a defined benefit plan are not taxable by the state of Alabama. This list is not to be considered an exhaustive list in any way. Please Note: If you are trying to contact one of these Pension Plan Administrators, we do not administer any of these plans and we have no contact information for them.

1199 Health Care Employees Pension Fund
1950 Hourly Pension Plan Goodyear Tire & Rubber Company
A&P Tea Co.
A.B. Dick Co
A.C. Transit Pension Plan
A.F. of L.-A.G.C. Building Trades Pension Plan
A.O. Smith Milwaukee Industrial Pension Plan (Smith Steel Workers)
AOLTW Pension
A.P. Green Pension Plan
ABB Combustion Engineering Systems
Abbott Laboratories Annuity Retirement Plan
ABC Rail Corp
Abex Corp Retirement Plan for Salaried Employees
Acacia Group Plan for National Headquarters and Agency Office Employees
Acordis Cellulosic friber, Inc.Hourly Plan, (American General)
Acme Steel Salaried and Hourly Employees
Adams Packing Pension Plan (admin by New England Insurance) Group #0467
Addsco, Inc.
ADT Security Systems
Aerojet-General Corp Consolidated Pension Plan
AETNA Pension Plan
Agents Pension Plan of Allstate Insurance Company
Air Liquide America Corp Retirement Plan
Air Products and Chemicals, Inc(State Street Retiree Services)
AK Steel Corp
Akzo Nobel Inc. Retirement Account Plan
Alabama Central Credit Union (CUNA Mutual administrator)
Alabama Farmers Cooperative Inc.
Alabama Farmers Fed Mutual Cas Dist(Amsouth Bank Trustee)
Alabama Metals
Alabama Power Company Pension Plan
Alabama River Pulp Company, Inc
Alaska Teachers' Retirement System
Alaska Teamster-Employer Pension Plan
Alaska United Food and Commercial Workers Pension Fund
Alatex
Albany International (Appleton Wire Division)
ALCOA -Aluminum Co of America
Allegheny Ludlum Steel Master (formerly Teledyne Brown Engineering)
Allied-Signal Corp
Allis Chalmers Consolidated Pension Plan
Allison Engine Hourly - admin by First Chicago NBD Bank
Alltel Corp Pension Plan
ALSTOM Power Inc Pension Plan
Alternator & Generator Specialists Inc
Aluminum Brick & Glass Workers(United Steelworkers of America ABG Div)
Alyeska Pipeline Service Co
Amalgamated Cotton Garment & Allied Industries Fund
Ameren
American Airlines Pension Plan
American Bakers Association Retirement Plan
American Bureau of Shipping (MetLife administrator)
American Cast Iron Pipe Co
American Cyanamid Retirement Trust
American Electric Power System Retirement Plan
American Federation of Musicians & Employers Pension Fund
American General Retirement Plan
American Home Products
American International Group (Hartford Steam Boiler)
American Maize Products Co. Retirement for Salaried Employees
American National Can
American Olean Tile Co
American Red Cross

News and Articles from Bara Business Center

Defined Benefit Plans

A defined benefit pension plan is a type of pension plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending on investment returns. It is 'defined' in the sense that the formula for computing the employer's contribution is known in advance.

In the United States, 26 U.S.C. § 414(j) specifies a defined benefit plan to be any pension plan that is not a defined contribution plan where a defined contribution plan is any plan with individual accounts. A traditional pension plan that defines a benefit for an employee upon that employee's retirement is a defined benefit plan.

The most common type of formula used is based on the employee’s terminal earnings. Under this formula, benefits are based on a percentage of average earnings during a specified number of years at the end of a worker’s career. Since the inception of the 401-k Plan, more and more companies are shifting the burden of funding retirement to the employee.

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