Pros And Cons

• Substantial benefits can be provided and accrued within a short time – even with early retirement

• Employers can contribute (and deduct) significantly more than under other retirement plans

• Plan provides a predictable benefit

• Vesting can follow a variety of schedules from immediate to spread out over seven years

• Benefits are not dependent on asset returns

• Plan can be used to promote certain business strategies by offering subsidized early retirement benefits

• Professional Administration Required