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Mademuasel [1]
1 year ago
11

Many older companies have changed from a defined-benefit plan to a(n) ________, which is a retirement plan where workers are cre

dited with a percentage of their pay each year, plus a predetermined rate of interest. Question 23 options: funded pension plan cash balance plan unfunded pension plan percentage plus inflation plan None of these
Business
1 answer:
avanturin [10]1 year ago
6 0

Cash balance plan is a retirement plan where workers are credited with a part of their pay annually and a predetermined rate of interest.

<h3><u>What is a Cash balance Plan?</u></h3>

A defined-benefit pension plan with a lifetime annuity option is referred to as a "cash balance pension plan."

<h3><u>What are some features of Cash balance plans?</u></h3>
  • Based on defined-benefit needs, the financing caps, funding requirements, and investment risk are established.
  • Like a defined-contribution plan, this type of plan is managed on an individual account basis.
  • The advantage of these programs is that age-based contribution caps are available.
  • Pretax contributions enable those 60 and older to save significantly more money each year than younger people.

You can learn more about defined pension plans work using the following link:

brainly.com/question/15241364

#SPJ4

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