When an employer converts from a traditional pension plan to a cash balance plan the employer is allowed to decide to transfer ______________ of the accumulated value of the traditional pension into the employee's new account.

Question

Quizplus · Accepted Answer

When an employer switches from a traditional pension plan to a cash balance plan, they have the flexibility to transfer either all or only a portion of the accumulated value of the traditional pension into the employee's new account. This decision is at the discretion of the employer, making both A and B correct.

When an Employer Converts from a Traditional Pension Plan to a Cash