Cash Balance Underpayments

November 2002
Journal of Financial Planning;Nov2002, Vol. 15 Issue 11, p28
Academic Journal
This article presents the results of a study conducted by the inspector general of the U.S. Department of Labor on companies that switched to cash balance plans, as of November 2002. 22 percent of companies that switched cash balance plans miscalculated the lump sum benefit paid to workers who quit before their normal retirement age. The miscalculations resulted in underpayments as high as $55,629.


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