Lawrence, Stewart D.
June 2002
Financial Executive;Jun2002, Vol. 18 Issue 4, p53
Academic Journal
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.


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