Cash balance plans are usually more attractive to employees than the other traditional pension plans and typically increase their retirement benefits by 20 percent to 40 percent in comparison with their former plan.

Question

Quizplus · Accepted Answer

Cash balance plans may be attractive for certain employees, especially higher earners and older workers, but they do not universally increase retirement benefits by 20 percent to 40 percent compared to traditional defined benefit pension plans. The impact varies based on individual circumstances, including salary, age, and years of service.

Cash Balance Plans Are Usually More Attractive to Employees Than