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.
“Turning, I kissed her,
Easily for sheer joy tipping the balance of love.”
—Philip Larkin (1922–1986)
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—Carolyn Wells (1862–1942)