A cash balance plan is a defined benefit retirement plan that maintains hypothetical individual employee accounts like a defined contribution plan. The hypothetical nature of the individual accounts was crucial in the early adoption of such plans because it enabled conversion of traditional plans without declaring a plan termination.
Read more about Cash Balance Plan: Basics, Conversion Controversy, Types of Pensions, Design of Plans, Lump Sum Calculation Cases, Age Discrimination Cases, Legislative Developments
Famous quotes containing the words cash, balance and/or plan:
“Better eight hundred in cash than a thousand on credit.”
—Chinese proverb.
““... To say of one mask it is like,
To say of another it is like,
To know that the balance does not quite rest,
That the mask is strange, however like.””
—Wallace Stevens (1879–1955)
“Tired minds don’t plan well. Sleep first, plan later.”
—Walter Reisch (1903–1963)