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.
“... idleness is an evil. I don’t think man can maintain his balance or sanity in idleness. Human beings must work to create some coherence. You do it only through work and through love. And you can only count on work.”
—Barbara Terwilliger (b. c. 1940)
“I have never yet seen any plan which has not been mended by the observations of those who were much inferior in understanding to the person who took the lead in the business.”
—Edmund Burke (1729–1797)