Define cash balance plan

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Define cash balance plan

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A cash-balance plan is a pension plan in which an employee's final returns are stated as a lump-sum amount of cash as an alternative of a yearly payout. Companies promise their workforce a usual yearly contribution and a usual proportion of gain in their superannuation accounts for every year they are working. 

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