Cash balance pension plan


A cash balance pension plan is a defined-benefit plan that is maintained on an individual account basis. The employer contributes to a participant's account with a set percentage of annual compensation plus interest charges. The company holds all ownership of profits and losses in the portfolio.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Payments System

Collective term for mechanisms (both paper-backed and electronic) for moving funds, payments and money among financial institutions throughout the nation. The Federal Reserve plays a major role in... Read More

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