A cash balance pension plan guarantees the participating employee:

Question

Quizplus · Accepted Answer

A cash balance pension plan guarantees the participating employee a minimum interest rate on their retirement savings. This minimum rate is typically set by the employer and is generally based on a percentage of the employee's current salary. The plan may also provide additional benefits, such as a minimum monthly pension amount for the first 10 years of retirement, but this is not a guarantee in all cash balance plans.

A Cash Balance Pension Plan Guarantees the Participating Employee