Marti

[Marti]

I recently read about a defined benefit pension plan in which the employer makes the contributions but the employee gets the credit. The acronym started with H. I am tryng to find this again but Mr. Google is not giving it up.

[Belgarath]

The employee gets the "credit" for what? In other words, what is this "credit?"

[AndyH]

Hash balance plan?

[david rigby]

On ‎8‎/‎26‎/‎2017 at 4:03 PM, Marti said:

...the employer makes the contributions but the employee gets the credit.

This is characteristic of most DB plans.  Perhaps with a little more infop from the original poster, we can help.

[Effen]

I think those are only legal in Colorado, but I hear you can have them in California, as long as you don't sell them.

[My 2 cents]

7 minutes ago, AndyH said:

Hash balance plan?

Nah, they only seem to be that way. 

Technically, the contributions under a 401(k) plan are considered to be employer contributions.

Most defined benefit plans (including cash balance plans) are funded exclusively by employer contributions. 

[SoCalActuary]

On 9/1/2017 at 10:33 AM, My 2 cents said:

Nah, they only seem to be that way. 

Technically, the contributions under a 401(k) plan are considered to be employer contributions.

Most defined benefit plans (including cash balance plans) are funded exclusively by employer contributions. 

If you are in a private sector plan, that is mostly true, but public employers usually have employee contributions.  In private plans the complex rules and interest arbitrage issues over accrued benefits are a real issue, and regulations favor putting the money into 401k instead.

[My 2 cents]

If you are talking about governmental defined benefit plans, there are some where the employee contributions are "picked up" and all contributions come from the employer (but the amounts that would, but for the pick up, have been paid by the employee are given the same treatment as under a plan where the mandatory employee contributions are actually withheld from the employee's pay).  You know, non-forfeitable, minimum death benefits, etc.