Cash Balance Pension Plans: Good News or Bad News?
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Bad News
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<span>Modification of defined benefit plans and conversion of defined contribution plans into Cash Balance Pension Plans (CBPs) has attracted a lot of attention recently. A comparison of the three plans and an examination of 10 companies reveal a significant financial incentive in favor of CBPs. The “good news” for a younger employee is level accrual of benefits and plan portability, and for stockholders, a smaller impact on net income. CBPs bear “bad news” for older and/or less mobile employees and the stockholders when the plan assets perform poorly. </span>
2004 ◽
Vol 3
(3)
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pp. 271-295
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2012 ◽
Vol 10
(8)
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pp. 451
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2010 ◽
Vol 5
(4)
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pp. 558-586
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1998 ◽
Vol 30
(6)
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pp. 25-31
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2013 ◽
Vol 29
(2)
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pp. 621
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2003 ◽
Vol 2
(2)
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pp. 99-126
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