Download or read book Cash Balance Pension Plan Conversions written by Jonathan Barry Forman and published by . This book was released on 2001 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the hottest issues in the pension world today involves companies replacing their traditional pension plans with cash balance plans. A cash balance plan is a pension plan that looks like a bank account or a 401(k) plan. The problem is that replacing a traditional pension plan with a cash balance plan will reduce the expected pension benefits of older workers. As a result, older workers can see their future pensions cut - in some cases deeply. Not surprisingly, many of these older workers have felt cheated, and they have filed a number of lawsuits to stop these so-called cash balance conversions. This Article considers the various legal issues that are raised by cash balance conversions. In particular, this Article considers whether these conversions violate the Employee Retirement Income Security Act (ERISA) or the Age Discrimination in Employment Act (ADEA). The Article concludes that the typical cash balance conversion will not violate these laws. As long as the conversion protects the already-accrued benefits of older workers, ERISA will be satisfied. And, as long as post-conversion benefit allocations are nondiscriminatory, ADEA should be satisfied.
Download or read book Private Pensions written by Barbara D. Bovbjerg and published by DIANE Publishing. This book was released on 2006-04 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: The nation's private defined benefit (DB) pension system, a key contributor to the financial security of millions of Americans, is in long-term decline. Since 1980, the number of participants in insured single employer DB plans has dropped from 27% in 1980, to 15% in 2002. Hybrid DB plans like cash balance (CB) plans may be a means to revitalize this declining system. This report: reviews current research about the implications of CB conversions for employee benefits; describes the prevalence & type of transition provisions used to protect workers' benefits in past CB conversions; & estimates the effects of CB conversions on the benefits of individual participants under a hypothetical conversion to a typical CB plan from a typical traditional DB plan.
Download or read book Cash Balance Pension Plan Conversions and the New Economy written by Julia Lynn Coronado and published by . This book was released on 2003 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Cash Balance Pension Plan Conversions written by Julia D'Souza and published by . This book was released on 2012 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, many corporations have replaced their traditional defined benefit (DB) pension plans with ldquo;cash balancerdquo; (CB) plans, which share many of the characteristics of defined contribution plans. This study provides empirical evidence on the characteristics of CB converters and the behavior of pension costs and obligations pre- and post-conversion. We find that CB converters are larger than firms that retain traditional DB plans as well as those that terminate DB plans. They are less profitable than the former, but more profitable than the latter. CB conversions are not associated with proxies for greater labor mobility (e.g., firm-specific employee turnover rate). They are associated with a workforce that is closer to retirement, on average, lending credence to the breach of implicit contract rather than the labor market hypothesis as a motivator of CB conversions. Consistent with this intuition, we document that CB converters recognize a reduction of unrecognized prior service costs in the year of conversion, consistent with a negative plan amendment. Unlike pre-conversion, pension costs and obligations are significantly lower for CB firms post-conversion than for a matched sample of firms retaining traditional DB plans. CB conversions are more popular than DB plan terminations among firms with overfunded pension plan assets in periods when expected return on plan assets is likely to be high, with a consequent positive effect on reported income.
Download or read book Private pensions implications of conversions to cash balance plans report to congressional requesters written by and published by DIANE Publishing. This book was released on with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effects of Cash balance Pension Plan Conversions on Older Employees written by Peggy Ridge and published by . This book was released on 2002 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Cash balance plans implications for retirement income report to the Chairman Special Committee on Aging United States Senate written by and published by DIANE Publishing. This book was released on with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Cash Balance Condundrum i e Conundrum written by United States. Congress. Senate. Special Committee on Aging and published by . This book was released on 2001 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Examining Cash Balance Pension Plans written by United States. Congress. House. Committee on Education and the Workforce and published by . This book was released on 2004 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book On the Determinants of Defined Benefit Pension Plan Conversions written by Kandice A. Kapinos and published by . This book was released on 2009 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study utilizes pension plan level 5500 data from the Department of Labor and Internal Revenue Service to investigate the determinants of traditional defined benefit plan conversion to hybrid cash balance plans during the 1990s. Incorporating the possibility of plan termination instead of plan conversion, the author finds a negative effect of plan funding status, union status, the number of total defined benefit plans at the firm, and plan contributions on the likelihood of plan conversion. The number of active participants and total defined contribution plans at the firm positively affect the probability of conversion. Plans at firms with at least one union plan were less likely to terminate. Additionally, the number of defined benefit plans at the firm and plan contributions had a negative effect on the likelihood of plan termination. Industry fixed effects were significant in all specifications.
Download or read book A Unifi Survey of Conversions from Traditional Pension Plans to Cash Balance Plans written by and published by . This book was released on 2000 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effects of Conversions from Traditional Pension Plans to Cash Balance Plans written by Josselyn A. Claudio Flores and published by . This book was released on 2001 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Cash Balance Plans and the Distribution of Pension Wealth written by Richard W. Johnson and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent pension plan conversions by numerous large employers have sparked debate about the merits of cash balance plans. This article compares pension wealth in traditional defined benefit (DB) plans and cash balance plans for a national sample of covered Americans aged 51 to 61. The simulations indicate that replacing DB plans with cash balance plans would redistribute pension wealth from those with long-term jobs to those with multiple short-term jobs and from those with substantial pension benefits to those with more limited benefits. Perhaps unexpectedly, women at midlife in 1992 with DB coverage would lose wealth in cash balance plans, but future cohorts of women are likely to fare better.
Download or read book Not How Much But How The Ethics of Cash Balance Pension Conversions written by Michael E. Johnson-Cramer and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the ethical issues arising from the conversion to cash balance pension plans in medium and large U.S. corporations. The conventional critique of these controversial plans centers on fundamental questions of distributive justice and rests on arguments dating back to the formulation of U.S. pension law. Since that time, however, the conditions which gave rise to these arguments have changed. Absent a persuasive argument concerning the distributional patterns of cash balance plans, we address them as a question of organizational ethics. Integrating insights from stakeholder theory, integrative social contracts theory, and empirical research on these conversions, we advance a critique of cash balance plan conversions based on common procedural approaches to these conversions.
Download or read book Private Pensions written by United States Accounting Office and published by Createspace Independent Publishing Platform. This book was released on 2018-02-13 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: HEHS-00-185 Private Pensions: Implications of Conversions to Cash Balance Plans
Download or read book The Cost and Duration of Cash Balance Pension Plans written by David T. Brown and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Controversy about the fairness of early transitions from traditional defined-benefit plans to cash-balance plans may have overshadowed the subtleties of funding a cash-balance pension liability. Because crediting rates of cash-balance liabilities float with market rates, the same techniques used to value and hedge floating-rate bonds provide the present value cost and effective duration of a cash-balance liability. The present-value cost of funding a liability varies dramatically across the menu of IRS-sanctioned crediting alternatives. For example, given the yield curve from November 15, 1999, the present value per $1.00 of cash balance of funding a liability paying off 30 years from now varies between $0.90 and $1.48. The effective duration of a cash-balance liability also varies dramatically according to various crediting rates; the effective duration is typically positive but much shorter than the expected time until retirement or other payment and, depending on the choice of crediting rate, can vary by a factor of five or so. These findings are useful for comparing the costs of plans, for comparing how various groups are treated in a plan conversion, or for evaluating the riskiness of any mismatch between assets and liabilities for various funding alternatives.
Download or read book The White Coat Investor written by James M. Dahle and published by White Coat Investor LLC the. This book was released on 2014-01 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by a practicing emergency physician, The White Coat Investor is a high-yield manual that specifically deals with the financial issues facing medical students, residents, physicians, dentists, and similar high-income professionals. Doctors are highly-educated and extensively trained at making difficult diagnoses and performing life saving procedures. However, they receive little to no training in business, personal finance, investing, insurance, taxes, estate planning, and asset protection. This book fills in the gaps and will teach you to use your high income to escape from your student loans, provide for your family, build wealth, and stop getting ripped off by unscrupulous financial professionals. Straight talk and clear explanations allow the book to be easily digested by a novice to the subject matter yet the book also contains advanced concepts specific to physicians you won't find in other financial books. This book will teach you how to: Graduate from medical school with as little debt as possible Escape from student loans within two to five years of residency graduation Purchase the right types and amounts of insurance Decide when to buy a house and how much to spend on it Learn to invest in a sensible, low-cost and effective manner with or without the assistance of an advisor Avoid investments which are designed to be sold, not bought Select advisors who give great service and advice at a fair price Become a millionaire within five to ten years of residency graduation Use a "Backdoor Roth IRA" and "Stealth IRA" to boost your retirement funds and decrease your taxes Protect your hard-won assets from professional and personal lawsuits Avoid estate taxes, avoid probate, and ensure your children and your money go where you want when you die Minimize your tax burden, keeping more of your hard-earned money Decide between an employee job and an independent contractor job Choose between sole proprietorship, Limited Liability Company, S Corporation, and C Corporation Take a look at the first pages of the book by clicking on the Look Inside feature Praise For The White Coat Investor "Much of my financial planning practice is helping doctors to correct mistakes that reading this book would have avoided in the first place." - Allan S. Roth, MBA, CPA, CFP(R), Author of How a Second Grader Beats Wall Street "Jim Dahle has done a lot of thinking about the peculiar financial problems facing physicians, and you, lucky reader, are about to reap the bounty of both his experience and his research." - William J. Bernstein, MD, Author of The Investor's Manifesto and seven other investing books "This book should be in every career counselor's office and delivered with every medical degree." - Rick Van Ness, Author of Common Sense Investing "The White Coat Investor provides an expert consult for your finances. I now feel confident I can be a millionaire at 40 without feeling like a jerk." - Joe Jones, DO "Jim Dahle has done for physician financial illiteracy what penicillin did for neurosyphilis." - Dennis Bethel, MD "An excellent practical personal finance guide for physicians in training and in practice from a non biased source we can actually trust." - Greg E Wilde, M.D Scroll up, click the buy button, and get started today!
