Recently, a highly controversial form of pension plan, the cash balance plan, has appeared in an effort to reduce sponsoring employer's costs and provide added flexibility.

Question

Quizplus · Accepted Answer

Cash balance plans have become more popular as they offer employers a way to reduce costs and provide flexibility in managing their pension obligations. These plans combine features of both defined benefit and defined contribution plans, leading to controversy over their impact on employee benefits.

Recently, a Highly Controversial Form of Pension Plan, the Cash