Guest Hedwig Posted September 10, 2003 Posted September 10, 2003 Other than a conversion to a cash balance plan, are there any other practical means for converting a unit benefit DB plan to a DC plan?
Belgarath Posted September 10, 2003 Posted September 10, 2003 I'm not quite sure what you mean by "conversion." If you mean as in converting a Money Purchase plan to a Profit Sharing plan, I would say no. See ERISA 4041(e).
rcline46 Posted September 10, 2003 Posted September 10, 2003 You cannot convert a defined benefit plan to a profit sharing/dc plan. You must do a termination of the DB plan. The problem is protection of benefits in DC plan where account values can decline.
AndyH Posted September 10, 2003 Posted September 10, 2003 When you say "other than a conversion to a cash balance plan", you are making a misinformed statement. A cash balance plan is still a DB plan. It is not a DC plan. It simply has some similar features.
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