All of the following characterize cash balance plans EXCEPT ________.
A) favors younger employees
B) considered hybrid pension plans
C) offers portability and predictable benefits
D) employees earn interest on contributed amounts
E) employers contribute percentage of employees' current pay

Question

Quizplus · Accepted Answer

Cash balance plans do not favor younger employees as they provide a predetermined benefit based on a specified formula, typically a percentage of the employee's salary. This benefit is the same regardless of age, unlike traditional defined benefit plans which may favor older employees who have worked for the company for a longer period of time.

All of the Following Characterize Cash Balance Plans EXCEPT ________