By Matthew Makowski Traditional defined benefit plans like pensions are vanishing. But that doesn’t mean employers are giving up on retirement plans. One of the more popular replacements has been a cash balance plan.
The slow death of pension plans has been a long time coming. But their demise was significantly sped up by the subprime mortgage crisis. Since 2009, several U.S. cities, counties and large firms have switched to cash balance plans.
One of the main reasons for the switch is so that these local governments and businesses can reduce cost. But that doesn’t mean employees are getting the short shrift. In fact, the …read more