Buying service credit for earlier employment raises the formula benefit but costs its full actuarial value

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Benefit formulas that use career average earnings pay less than final salary ones for the same years of service A plan freeze stops accruals for new hires and sometimes for everyone already enrolled A defined benefit formula multiplies final average salary by years of service and an accrual rate Vesting requirements decide whether you leave with a benefit at all or only with your own contributions Cliff vesting at five years means leaving at four years and eleven months pays nothing from the employer side Waiving the joint and survivor annuity requires a spouse's written consent in most private plans Converting the pension to a lump sum uses the plan's own rate which is rarely the annuity you could buy outside Withdrawing from a multiemployer plan can trigger a liability payment that a small contractor cannot survive The three-pillar model splits a public scheme occupational plans and private savings into separate jobs The PBGC guarantees the monthly benefit up to a statutory cap if a single-employer plan runs out of money