Much has been written about the issues surrounding cash balance plan conversions in the past and the subsequent “blessing” given to hybrid plans by the Pension Protection Act (PPA) – and very few people, if anyone, predicted the explosive growth in cash balance plans that has begun in 2007.
Contemporary cash balance designs can make a huge impact in retirement savings. Smaller plan sponsors, particularly profitable organizations and professional groups, are installing these plans as a means of saving significant taxes for owners. Larger plan sponsors are only just beginning to learn of ways these plans can be used to save large amounts for all employees. They can be particularly effective as an alternative to expensive, sometimes opaque and potentially risky non-qualified deferred compensation plans.
In either case, average employer contributions for non-highly compensated employees are much higher in organizations that use cash balance than those using a traditional defined contribution plan structure.
Listen in on the discussion between;
- Nevin Adams Editor-in-Chief of PLANSPONSOR
- Mark Davis from KDS Advisors
- Fred Reish Managing Director and Partner, Reish Luftman Reicher & Cohen
- along with special guest, Daniel Kravitz , President, KRAVITZ
class=”style3″>As we discuss the reasons behind ” Cash Balance Plans’ Breakout Year.”
class=”style3″> You can listen to the Web cast at http://audio.plansponsor.com/audio/webcasts/PluggedIn121107.mp3
class=”style3″> A copy of the presentation slides is available HERE
class=”style3″> You can check out the recordings of previous ‘Plugged In” Web casts at https://plansponsor.webex.com
« DBSummit07: Public Plan Myths