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Why Have Many Companies Switched from Traditional Defined-Benefits Plans to Cash-Balance

Question 26

Multiple Choice

Why have many companies switched from traditional defined-benefits plans to cash-balance plans?


A) They want to shower their employees with money.
B) Regulatory reform made it necessary.
C) They save money with them as a result of reduced future benefits for older workers.
D) All of the above are correct.
E) Only B and C are correct.

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