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Guest Brian Walsh
Posted

Does anyone know how many traditional defined benefit plans have been converted to the cash balance model?

Posted

I would contact ASPA (American Society of Pension Actuaries) or the Academy of Actuaries or the Society of Actuaries. I'm pretty sure ASPA has a gov. affairs committee who would have that information. The other organizations would probably also have similar data.

You may also want to contact either the IRS or DOL. With all the controversy they probably have data.

Also, all of the general sessions at the 2000 EA meeting were on Cash Balance Plans so the transcripts or audio tapes may be of some help.

Why do you ask?

Posted

Jack VanDerHei (sp ?) of the Employee Benefits Research Institute spoke at the 2000 Enrolled Actuaries meeting. The transcript included the following quote

"....106 plans that had converted to cash balance by 1996."

He admits his data gathering process may be biased toward publicly-traded companies and therefore may not pick up all the cash balance plans. Also, the focus was on conversions, rather than any started from scratch.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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