Defined Benefit Plan

The ERB provides a defined benefit retirement plan funded by contributions from both the employee and the employer for the majority of ERB members. The retirement benefit is determined by a formula applied to the member’s salary history and years of qualified service. The Defined Benefit Plan (DBP) uses the following formula to determine your pension benefit:
Average annual salary x service credit x .0235 = annual benefit The DBP provides a stable monthly pension payment for the life of the retiree. It also offers members two options to provide lifetime benefits to a surviving beneficiary after the retiree’s death.
The ERB Defined Benefit Plan is administered as a qualified plan under the Internal Revenue Code, Section 401(a). In a qualified plan, employee contributions are deducted pre-tax; federal and state income taxes are deferred until the member receives monthly retirement benefits or their contributions are withdrawn.