Cash Balance Plans

Many corporations and professional partnerships traded traditional defined benefit plans in favor of cash balance plans. A cash balance plan expresses benefits to employees in a lump-sum amount on statements, while a traditional defined benefit plans expresses it as an annuity, payable over the participant’s lifetime. A cash balance plan typically lower administrative costs and attractive deferred tax benefits, however, it presents unique challenges for designing an investment strategy accounting for the risks of underfunding by the organization and the volatile capital markets. Aurum’s tailored investment process helps investment committees walk through the necessary steps of determining an interest credit rate, designing an Investment Policy Statement, and rigorously monitoring the investment plan to achieve its objectives. For more information regarding our cash balance plan services please contact us at 440-605-1900.


Cash balance plans can hold hidden risks for plan sponsors

Your Organization Should Consider a Cash-Balance Pension Plan - Statistical Data Included

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