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: Did you ever stop to think, Porter, that in over three years there’s one word we’ve never said to each other, even in fun.
Porter: To you, I’m a cash register. You can’t love a cash register.
Lora May: And I’m part of your inventory. You can’t love that either.”
—Joseph L. Mankiewicz (1909–1993)
“As deaths have accumulated I have begun to think of life and death as a set of balance scales. When one is young, the scale is heavily tipped toward the living. With the first death, the first consciousness of death, the counter scale begins to fall. Death by death, the scales shift weight until what was unthinkable becomes merely a matter of gravity and the fall into death becomes an easy step.”
—Alison Hawthorne Deming (b. 1946)
“If you insist on asking me why I feel the way I do, I plan to take the Fifth Amendment.”
—Mason Cooley (b. 1927)