Cash Value Pension Plan or Benefit

[Guest David Tedesco]

Is anyone using a Cash Value Pension Plan or Benefit? This is a type of DB plan in which the formula expressed the benefit as a Cash Value rather than an annuity. It is not the same as a Cash Balance plan although there are some similarities.

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[david rigby]

I'm ignorant of that terminology. Could you elaborate?

[Lorraine Dorsa]

Are you thinking of a fully insured plan, also called a 412(i) plan?

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[Guest David Tedesco]

Terminology is a killer. The term "Cash Value" is not in wide use. Actually, it means the same as Lump Sum. The point being that the focus is on the lump sum not an annuity. Perhaps the term "Pension Equity Plan" or PEP would be more familiar. The reason for my inquiry is to find out what others are doing for employee communication.

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[John A]

David,

I'd suggest you pose a new topic using the title Pension Equity Plan and see what response you get.

[John A]

David,

I'd suggest you pose a new topic using the title Pension Equity Plan and see what response you get.