Cash Balance Pension Plans
A cash balance plan is a common type of hybrid pension plan. Like a Defined Benefit plan, contributions from employees and employers are pooled and professionally managed. But the benefits employees actually get is based on the amount accumulated in the account (not on a formula based on salary and years of service). Employers guarantee a minimum rate of return, though the payout is likely to yield lower yearly returns than a traditional pension plan. This model helps reduce and manage future liability for the employer.
Join the Discussion
After you comment, click Post. You can enter an anonymous Display Name or connect to a social profile.
LATEST FINANCE HEADLINES
Texas May Increase the Number of Toll Roads in the State2 days ago
Many Places Tax 'Summer People' Different from 'Townies'2 days ago
Income Growth Varies Widely Across States2 days ago
The Week in Public Finance: Money, Money and, Well, Money2 days ago
Are Oil and Gas Operators Cheating Texas Landowners?3 days ago
San Francisco Will Try Again on Airbnb Law3 days ago