Currently, pension funds can be diverted from older employees toward younger employees through cash balance plans.

Question

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Cash balance plans are a type of defined benefit plan that can allocate pension funds more evenly between older and younger employees by maintaining individual accounts for each participant, rather than pooling all assets in a single trust. This can allow older employees to receive benefits sooner and younger employees to accrue benefits more quickly, but it can also result in some level of cross-subsidization between generations.

Currently, Pension Funds Can Be Diverted from Older Employees Toward