Redefining pension benefits for new teachers using a cash-balance approach serves the practical needs of existing defined-benefit pension plans
About half of the legislation deals with traditional defined-benefit pension plans
, but other parts discuss the more popular defined-contribution plans and IRAs, which affect more taxpayers than do the traditional pension rules.
1 million American workers and retirees in 30,330 private single-employer and multi-employer defined-benefit pension plans
As of December 2005, the company had held seven seminars throughout the country--each attended by hundreds of independent advisers--to help them understand that the retirement needs of baby boomers will be different due to their expected longevity and the decline of defined-benefit pension plans
Hawaii's Aloha Airlines has been granted court approval to terminate its employees' defined-benefit pension plans
Earlier versions of the survey have collected data separately on traditional defined-benefit pension plans
and account-based plans, such as 401 (k) accounts.
One of the most important issues facing the pension world today involves companies replacing their traditional, defined-benefit pension plans
with cash-balance plans.
Assumed discount rates for defined-benefit pension plans
declined sharply in 1993, apparently in response to (1) an across-the-board interest rate decline and (2) a statement by Securities and Exchange Commission Chief Accountant Walter Schuetze that public companies should use discount rates that reflect current market rates.
Cash-balance plans are defined-benefit pension plans
that express participants' retirement benefits in the form of nominal "accounts" instead of as annuities, like more traditional pension plans.
By the year 2000, he added, there will be a shift away from defined-benefit pension plans
that promise to pay a specified amount to each retiree in favor of defined-contribution plans, which he termed less "paternalistic" because employees can choose how much income to set aside into their retirement accounts.