Frozen Cash Balance Plan

[Guest Grumpy456]

When future cash balance plan employer credits are frozen does the plan still make future interest credits on the frozen hypothetical account balance?

[mbozek]

I thought that interest credits on the account balance continued but there would be no further annual credits of comp. What does the plan say?

[My 2 cents]

I thought that it was not permitted to stop recognition of interest credits, since they are considered to be part of the accrued benefit. If you freeze a traditional defined benefit plan, there would be no question but that the value of the deferred benefits would go up from year to year due to the shortening of the deferral period. How could it be any different for cash balance plans?