Planning for Pensions or Retirement Plans?

Frank Werntz & Associates, Inc.

We are pleased to offer you a brief view of the services provided by our firm, Frank Werntz & Associates, Inc. in connection with various fringe benefit programs.

Who We Are

I have many things to be thankful for. With several years work as a power plant chemist, and a few in multiline insurance, employee benefit work at FW&A was a good opportunity. A good business practice and client base were already established and mostly minor changes have been made to update latest practices and rulings.

Practice Areas

DEFINED CONTRIBUTION PLANS provide for an employer contribution. The benefit available for participants will depend on Employer contributions, investment earnings or losses, and forfeitures. There are two basic types of Defined Contribution Plans:

Money Purchase

The employer may contribute up to the lessor of (a) 25% per year of each participating employee’s compensation or (b) $61,000 in 2022 or $66,000 in 2023, to each employee’s account. Any forfeitures arising can be either (1) reallocated to the accounts of other Participants in a nondiscriminatory manner or (2) used to reduce future employer…

Profit Sharing

Allocation of Plan

Annual allocation of the Defined Contribution plan showing individual account balances, total assets of the plans (including gains or losses), forfeiture calculations, allocation of Employer and/or Employee contributions, etc. A bound computerized allocation report will be provided to the Employer annually summarizing the above.

Notices & News

Notices or news of interest will be posted here–check in occasinally to see what is new.

Average Annual Returns

Though statistics can be misapplied and limited in scope, I frequently look at average annual returns for the investment reports of plan allocations. Generally 5-10% is typical over the twenty years I have been in this business.

A handful of the first annual plan reports I delivered for 2017 had a 17% average annual return. Another plan had 19%. So based on this small sample of different plans with different funds in their portfolio, some pooled, some individual accounts, 2017 was for some an exceptional year for gains. With 2018 much less robust the two years together are still better than average. Over time, though not without risk, equity investments seem to generate more gains.