Are 412 Split Funded Defined Benefit Plan new to the retirement planning marketplace?
No. These plans have been around since ERISA (in 1974) or even before. They were referred to as fully insured defined benefit plans. In past years, before the demise of retirement endowment contracts, they were fully funded with a retirement endowment contract issued with a face amount equal to 100 times the normal retirement benefit. They are not a grey area of the law and are, in fact, a very conservative approach to retirement plan funding. All benefits are guaranteed by a highly rated insurance company.
