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.
“Genius has infused itself into nature. It indicates itself by a small excess of good, a small balance in brute facts always favorable to the side of reason.”
—Ralph Waldo Emerson (1803–1882)
“The nonconformist and the rebel say all manner of unanswerable things against the existing republic, but discover to our sense no plan of house or state of their own.”
—Ralph Waldo Emerson (1803–1882)