Cash Balance Plans: The New Trend In Retirement?

Babich, Anthony C.
April 2000
Journal of Financial Planning;Apr2000, Vol. 13 Issue 4, p92
Academic Journal
Cash balance plans are a form of hybrid retirement arrangement designed to combine the best features of different plans; while the intent is to provide a better retirement benefit to employees, cash balance plans are not always in an employee's best interests. To help financial planners better advise their clients, this article examines how cash balance plans work. The article also discusses a specific case in which a cash balance plan was introduced, and the consequences that followed.


Related Articles

  • Exaggerated Death Report: Cash-Balance Plans Not Even Moribund. Lucie, Alvin D. // Journal of Financial Service Professionals;Sep2004, Vol. 58 Issue 5, p77 

    The author, upon reading the title of the July Journal article "Are Cash-Balance Plans Really Dead?" was prepared to take strong exception to the presumed answer of its author, but found his only disagreement was with the failure of the July article to note that the decision that has brought...

  • EXECUTIVE SUMMARIES.  // Benefits Quarterly;1996 Third Quarter, Vol. 12 Issue 3, p3 

    Presents the abstracts of several articles featured in the third quarter 1996 issue of "Benefits Quarterly." Topic on downsizing and other related workforce trends; Discussion on contribution retirement program designs; Utilization of a balance scorecard approach in assessing the future of cash...

  • Cash Balance Plans. ZALL, MILTON // Strategic Finance;Mar2002, Vol. 83 Issue 9, p29 

    The article discusses cash balance retirement plans. Cash balance plans are employer-funded arrangements that guarantee employees, upon retirement,t the sum of all contributions plus a specified interest rate. Cash balance plans are equitable in that two people earning the same pay accumulate...

  • Questions and Answers on Cash Balance Pension Plans. Green, L. Bernard // Compensation & Working Conditions;Sep2003, pN.PAG 

    Answers several questions on cash balance pension plans. Definition of a cash balance plan; Methods used in cash balance plans to determine the amount credited to each employee; Retirement age specified in the cash balance plan; Strategy used in cash balance plans to reconcile opposing provisions.

  • Cash balance plans not age biased: Court. Geisel, Jerry // Business Insurance;6/21/2004, Vol. 38 Issue 25, p1 

    The design of cash balance pension plans does not discriminate against older employees, a federal judge ruled this month, in a decision that runs counter to a controversial 2003 decision. Judge Catherine Blake of the U.S. District Court for the District of Maryland in Baltimore said a "sensible...

  • Guide to mandatory rollovers of small balance cash-outs. Kugelmass, Rachel D. // Employee Benefit News;2/1/2005, Vol. 19 Issue 2, p44 

    Presents information on the rules applicable to involuntary distributions of small balance cash-outs that were modified under the Economic Growth and Tax Relief Reconciliation Act of 2001. Requirements that should be satisfied by a retirement plan; Options to consider when determining ways to...

  • Are Cash Balance Pension Plans A Viable Retirement Program For Corporate America? Lucas, John J. // Journal of Business & Economics Research;Aug2012, Vol. 10 Issue 8, p451 

    Cash Balance Pension Plans are a defined benefit plan where employees have a hypothetical account that increases annually, as a result of compensation credit as well as interest credit. In essence, cash balance pension plans combine elements of both a traditional defined benefit plan and a...

  • New rules for hardship distributions and rollovers create hidden domestic partner rights. Palmieri, Frank // Employee Benefit News;May2007, Vol. 21 Issue 6, p74 

    The article offers information on the Pension Protection Act of 2006 (PPA) in the U.S. PPA reformed the rules governing defined benefit pension plans, cash balance plans and 401(k) plans. It recognizes the rights of a domestic partner for qualified retirement plans. The law recognizes domestic...

  • Collins et al. v. Commonwealth Industries et al.  // Legal-Legislative Reporter;Apr2009, Vol. 43 Issue 4, p15 

    The article discusses a court case wherein the plaintiffs are alleging that the defendant was not able to provide requested information in accordance with Employee Retirement Income Security Act (ERISA). It notes that the plaintiffs were participants in the cash balance plan of the defendant...


Read the Article


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

Try another library?
Sign out of this library

Other Topics