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Converting traditional pensions plans to cash balance plans: Should you do it?

✍ Scribed by Hurtt, David N; Kreuze, Jerry G; Langsam, Sheldon A


Publisher
John Wiley and Sons
Year
1999
Tongue
English
Weight
104 KB
Volume
11
Category
Article
ISSN
1044-8136

No coin nor oath required. For personal study only.

✦ Synopsis


Converting your firm's traditional pension plan to a cash balance plan will reduce pension expense. It will also help you attract younger, more mobile employees, since the plan is portable. But you'll be penalizing older employees for their loyalty to the company. Instead of receiving their traditional pensions, they'll end up with smaller ones. Some may even sue the company. So should you convert? The authors discuss the complex issues involved, and provide a checklist to help you decide.