Cash Balance Plans: What Do They Mean for Retirement Security?

Research Report

Cash Balance Plans: What Do They Mean for Retirement Security?

Abstract

The conversion of traditional defined benefit plans to cash balance plans is among the most controversial aspects of pension policy today. Because the controversy has focused on the treatment of older workers, however, the debate has generally ignored the long-term implications for retirement security. In fact, cash balance plans can often provide more retirement security than traditional defined benefit plans or defined contribution plans, especially for workers who change jobs frequently.

Research Area: 

Cross-Center Initiative

Cross-Center Initiative: 
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