Setting up a pension plan is a highly specialized area that requires expertise. "Pension plans are on a continuum. On one end, the purpose of the plan is strictly an employee benefit plan. This is typical in many midsize and larger companies . At the other end of the continuum the purpose of the plan is strictly a tax shelter for the professional or owner of the business, recognizing that contributions to the pension are deductible and grow tax-deferred. The plan we design can be anywhere along that continuum. It's our job to identify where the client's goals lie and design a plan that meets their need's," says Stephen Abramson, President.

"Typically, a CPA recommends us to a successful professional practice or business for help in developing a pension plan. We meet with the client and the accountant to discuss alternatives. We try to identify the company's goals, what they want to accomplish in their pension plan and then make a recommendation in the form of a proposal," he concludes.

When employee benefits are an important factor, a 401k plan is often part of the proposal. This increasingly popular type of profit sharing plan usually includes nominal employer contributions, with employees contributing the larger amount as a payroll deduction. Contributions are tax deductible and accumulate tax deferred.

Once all the details are in place, APS explains the plan to the client's employees and provides personal assistance. This may include a slide presentation, group meetings, and follow up with each employee with individual assistance.

Defined benefit plans are popular with small closely held businesses because of the leverage possibilities. These traditional pension plans usually provide a fixed monthly benefit at retirement, but may also offer a lump-sum payment. Defined benefit plans can be leveraged in favor of an owner employee who is older and drawing a higher salary than his or her employees. A client's pension program may also include other types of retirement plans.

The firm recently modified its name from APS Pension Services Inc. to APS Pension & Financial Services Inc. because of its increasing involvement in related financial services. APS assists people in selecting specific investment vehicles for their pension plans, such as mutual funds, variable annuities, and life insurance. Insurance products are handled through major companies such as Mutual of NY (MONY), Nationwide Life Insurance Co, and Aetna Life and Annuity, in addition to many others through MONY Bro kerage INC. (MBI). Investment products are offered through MONY Securities Inc, an NASD registered broker/dealer.