| Cash Balance Pension Plan |
An employee pension plan whereby an employer will credit the participant's account with a set percentage of their yearly compensation plus interest charges.
|
Because changes in the value of the participant's portfolio does not affect the yearly contribution, this plan acts similar to a defined contribution plan. Alternatively, because changes in the portfolio also do not affect the final benefits to be received by the participant upon retirement or termination, the company solely bears all ownership of profits and losses within the entire portfolio, similar to a defined benefit plan.
|
Introductory Tour through Retirement Plans - Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it. |
|
Related Terms
 |
|
