April 29, 2019
Lift Retirement: News & Information For Employers
- Is It Time to Consider A New Design Plan?
- Should You Include ESG Funds in Your Retirement Plan? Maybe, Maybe not.
- How to Think About Financial Wellness ROI.
You may have heard about a “cash balance plan” and wondered whether it would be something advantageous for your business. A cash balance plan operates differently from other types of traditional retirement plans in that it combines features of both defined benefit and defined contribution plans.
Technically, a cash balance plan is classified as a defined benefit plan, which means it is subject to minimum funding requirements. Likewise, the investment of cash balance plan assets are managed by the employer or an investment manager appointed by the employer. Since cash balance plans are a “benefit,” increases and decreases in the value of the actual plan’s investments do not directly affect the amount promised to employees.