TITLE

PENSION DESIGN Can Boost CASH FLOW

AUTHOR(S)
Lawrence, Stewart D.
PUB. DATE
June 2002
SOURCE
Financial Executive;Jun2002, Vol. 18 Issue 4, p53
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article looks at defined benefit pension plans as a method of increasing a company's cash flow and attracting new employees. Financial executives often view defined benefit (DB) pensions plans as a financial burden on the corporate balance sheet, holding little redeeming value when attracting or retaining younger employees. The author discusses how DB plans can be tailored to yield valuable cash management solutions for plan sponsors and serve as an alluring employee benefit which appeals to prospective recruits. Avnet Inc., a fortune 200 wholesaler of electronic components, is discussed as an example of a company which sponsors both a traditional 401(k) plan and a cash balance DB plan. INSET: Avnet's Modified Pension Plan.
ACCESSION #
11927651

 

Related Articles

  • DB pensions garner new respect as DC plans falter. Lee, Karen // Employee Benefit News;Nov2002, Vol. 16 Issue 14, p33 

    Focuses on the correlation between the demand for defined contribution employee benefit programs and the defined benefit (DB) pension plans. Factors that contributed to the increase in demand for DB coverage; Role of DB pension plans in the retirement programs of large corporations and unions;...

  • Is (k) for (k)aput? Aschkenasy, Janet // Treasury & Risk Management;Sep2002, Vol. 12 Issue 8, p35 

    Reports that corporations in the United States are failing to protect the interests of 401(k) plan participants. Fiduciary responsibility to make investment decisions based solely on participants' best interests; Fund flow into defined contribution plans; What chief financial officers can do to...

  • Sears scales back defined benefit, retiree med access. Wojcik, Joanne // Business Insurance;2/2/2004, Vol. 38 Issue 5, p4 

    Sears PLC is believed to be the largest U.S. employer ever to shut its defined benefits plan to new participants. Under the pension change, current employees over age 40 have the choice of remaining in Sears' defined benefit pension plan or participating in the company's new, enhanced 401 (k)...

  • Congress approves sweeping pension reforms. Shepherd, Leah Carlson // Employee Benefit News;Sep2006, Vol. 20 Issue 12, p3 

    The article reports on the approval of the U.S. Congress on a legislation on employees pensions which focuses on 401(k)s, defined benefit plans and financial security for retirees in the country. Among the bill's provisions include prohibition against benefit increases if plan is less than 80%...

  • Automatic 401(K) Enrollment Boots Savings. Amend, James M. // Money Management Executive;7/18/2005, Vol. 13 Issue 28, p1 

    The article presents information on the automatic enrollment for 401(k) plans in the U.S. The Investment Co. Institute and the Employee Benefit Research Institute are encouraging employers to step up their use of automatic enrollment for 401(k) plans to assist the retirement savings of millions...

  • On the bandwagon. Bridgeford, Lydell C. // Employee Benefit News;Sep2007, Vol. 21 Issue 11, p46 

    The article investigates the trend in which employers in the U.S. have adopted 401(k) automatic enrollment and Roth 401(k) accounts. According to a survey of 163 organizations with defined contribution and defined benefit plans, conducted by the Employee Benefit Research Institute and Mercer...

  • IBM moves away from defined-benefit pension plan. Bergstein, Brian // Buffalo Law Journal;1/12/2006, Vol. 78 Issue 4, p20 

    Reports on the decision of International Business Machines Corp. to freeze its pension plan in 2008 and enhance its 401 (k) benefits for its workers in the U.S. Costs and complexities posed by defined-benefit plans on companies; Advantage of the 401 (k) benefits to employees; Factors that...

  • Largest 401 (k) plan administrators.  // Business Insurance;8/30/2004, Vol. 38 Issue 35, pT10 

    This article focuses on a survey related to 401 (k) plan. Companies must offer 401(k) plan administration services, such as recordkeeping and handling of account activity, on an unbundled basis. It includes both unbundled and bundled 401(k) plans. It reflects staff dedicated to 401(k) plan...

  • A Quick Reference: Employee Benefit and Retirement Planning. Leimberg, Stephan R.; Geller, Sheldon M. // CPA Journal;Aug99, Vol. 69 Issue 8, p63 

    Describes several popular employee benefit plans. Defined benefit pension plan; Profit sharing plan; Section 401(k) program.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics