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:
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So I do rather feel, by and large,
Some cash should be tendered
For services rendered,
But I can’t quite decide what to charge.”
—Anonymous.
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—Hesiod (c. 8th century B.C.)