Defined Benefit Contributory Plans Administration

Administering contributory plans involves the following administrative tasks:

• You work with the benefits and payroll departments to ensure that the correct deductions, mandatory and voluntary, are taken out of employee's paychecks.

• When contributing employees terminate, you may need to refund contributions.

  If these employees are rehired, you may need to administer any service buyback program available to employees who repay the withdrawn contributions.

• If the plan offers a service purchase program, you need to establish purchasable service, track payments, and credit both the employees' contributory accounts and service accounts as payments are made.