Secure Your Retirement with FTHRA’s Pension Plan

At FTHRA, we recognize the importance of pensions in achieving the American Dream and are committed to providing our employees with a secure retirement future. Join us and secure your retirement with FTHRA's pension plan today.

The shift from pensions to 401(k)s in recent decades has placed greater responsibility on workers to save for retirement. However, pensions remain a cornerstone of retirement security, offering a reliable source of income in an uncertain financial landscape.

Secure your future with FTHRA's robust pension plan, designed to provide guaranteed income during retirement. Working full-time at FTHRA not only offers rewarding career opportunities but also lays a strong financial foundation for your retirement years.

Eligible employees have the privilege to participate in the Tennessee Consolidated Retirement System (TCRS), recognized as one of the top 5 strongest pension funds in the United States. TCRS is a defined benefit plan, offering lifetime retirement, survivor, and disability benefits for employees and their beneficiaries.

The advantages of a pension over a 401(k) are numerous. With a pension, you're assured of a fixed monthly payment every month when you retire, providing greater stability and predictability. In contrast, with a 401(k), you must navigate investment decisions yourself, subjecting your account balance to market conditions and withdrawal limitations.

TCRS does the saving for you, ensuring a guaranteed monthly check for life once you retire. Your monthly payment amount is determined based on your average top earnings and years worked at FTHRA, offering income predictability and peace of mind throughout your retirement.

To further assist you in planning for retirement, TCRS provides resources such as a customized retirement dashboard, allowing you to track your progress and access retirement-ready education materials.

For more information about TCRS and retirement planning, please visit the Tennessee Treasury website (link to TCRS website) or contact our Director of Human Resources, Malaika Barlow.

 

Difference Between a Pension and a 401(k):

A pension and a 401(k) are both retirement plans, but they operate in different ways and offer different benefits:

Pension:

  • Also known as a defined benefit plan.

  • Provides a fixed monthly payment to retirees for life.

  • Employer-funded and managed, with contributions made by the employer on behalf of the employee.

  • Retirement benefits are based on factors such as an employee's salary and years of service.

  • Offers guaranteed income during retirement, providing financial stability and predictability.

  • The employer bears the investment risk and is responsible for managing the pension fund to ensure there are enough funds to pay the benefits owed.

  • Typically pays steady monthly checks once the employee retires, though lump-sum distributions may also be available.

  • Offers income replacement, with retirees knowing the age at which benefits will start and the monthly payment amount.

401(k):

  • Also known as a defined contribution plan.

  • Allows employees to contribute a portion of their salary to a retirement account on a pre-tax basis, with contributions often matched by the employer up to a certain percentage.

  • Contributions are invested in a selection of mutual funds or other investment options chosen by the employee.

  • The account balance grows over time based on investment performance.

  • Retirement benefits are not guaranteed and depend on factors such as investment returns and contribution levels.

  • Offers flexibility and control over investment decisions, allowing employees to choose how to allocate their contributions among different investment options.

  • Employees bear the investment risk and are responsible for managing their investment portfolio.

  • Withdrawals are subject to tax and penalties if taken before retirement age, and there are limits on annual contributions.

In summary, while pensions offer a guaranteed monthly payment for life and are managed by the employer, 401(k) plans provide flexibility and control over investments but do not guarantee retirement income.

 

Contacts:

Human Resource Department at FTHRA

 

First TN Human Resource Agency & Meals on Wheels of Northeast TN

 

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