Cash Balance Pension Plan
In corporate America, the majority of workers have been introduced to pension plans. A pension plan can be defined as a payment, not wages, made regularly to a person (or family) who has fulfilled certain conditions of service and reached a certain age.
A new retirement plan is becoming popular throughout US companies. The plan may be beneficial to new employees, but the plan may not help the old employees.A
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showed last 75 words of 407 total
does not mean that they are going to receive full benefit (MSN.com). The cash balance pension plan is a new plan that is being widely used across the United States. The cash balance pension plan is based on your salary, not your seniority with the company. Therefore, the plan would not be beneficial to older, with 15 years in a company, and $42,000 annually versus a new employee with only 5 years but, making $55,000 annually (MSN.com).