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:
“Lora May: I’ve been a good wife. The best wife your money could buy.
Porter: Strictly cash and carry.”
—Joseph L. Mankiewicz (1909–1993)
“Daily life is governed by an economic system in which the production and consumption of insults tends to balance out.”
—Raoul Vaneigem (b. 1934)
“Any plan conceived in moderation must fail when the circumstances are set in extremes.”
—Klemens Wenzel Neponuk Lothar Von, Prince Metternich (1773–1859)