Small Business Pension Program, UBS How It Works




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			What is the Small Business Pension Program?
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	A defined benefit plan promises plan participants a specific total accumulation or "benefit" at retirement.

	The employer decides what percent of annual income he/she wants to provide at retirement or how much of current income he/she can comfortably afford to contribute to the plan. You can estimate the maximum annual contribution for this year by creating a proposal customized for your client.

	The annual contribution amount is based upon:

	Current age - the older the business owner, the larger the annual contribution needed to reach any specific target. Average of the participants three highest years of income. Planned retirement age - usually at least five years from the year the plan is adopted. In subsequent years, the balances that accumulate through contribution and investment performance in the defined benefit plan.

	The Small Business Pension Program plan administration services are provided by EMJAY, a leading national TPA, who will work with you, your client and your client's tax advisor to answer questions about specific situations and the suitability of this plan. EMJAY will work with you to gather additional financial information and to complete the one-page Adoption Agreement for your client to sign. The precise contribution amount for this year will be calculated once the client's fiscal year has closed. You will open an investment account at UBS Financial Services Inc. and work with your client to choose suitable investments. Under IRS guidelines, your client is obligated to contribute the required amount to the plan each year it remains open. Changes in circumstances can be handled in subsequent years through plan amendments. See Key Dates to learn about changing plans. Estimate the maximum contribution for your clients now by creating a proposal.


	Getting Started

	1. Identify prospects for the Small Business Pension Program by reviewing your clients to see who is eligible. 2. Run a proposal to estimate maximum contribution, tax savings, and projected accumulation. You can also set a specific contribution amount. 3. Talk to your client and present the customized proposal.


	For More Information

	Call Retirement Consulting Services at 1 (888) 738-1546, option 1


		UBS Financial Services Inc. Retirement Consulting Services 1200 Harbor Blvd. Weehawken, NJ 07086 Copyright 2001-2006 Leaffer Shapiro, LLC. All rights reserved. UBS Financial Services Inc. does not provide tax or legal advice. Your clients should consult their tax or legal professional regarding their retirement plan. The Small Business Pension Program is a service mark of UBS Financial Services Inc. For Broker/Dealer Use Only. This material has been prepared by UBS Financial Services Inc. for broker/dealer information only, has not been filed with the NASD and may not be reproduced, shown or quoted to members of the public or used orally or in written form as sales literature.