A ____ plan combines some of the features of a defined contribution plan with features of a defined benefit plan to produce a plan that is more portable than a traditional defined benefit plan.

Question

Quizplus · Accepted Answer

A cash-balance plan is designed to provide benefits similar to a defined benefit plan, but with more portability for employees. It allows employees to accumulate benefits over time with a specified contribution from the employer and a guaranteed minimum return on investment. This makes it different from a defined contribution plan where benefits depend on the contributions made by both the employee and the employer and the investment returns are not guaranteed.

A ____ Plan Combines Some of the Features of a Defined