Why Have Many Companies Switched from Traditional Defined-Benefits Plans to Cash-Balance

question 68

Multiple Choice

Why have many companies switched from traditional defined-benefits plans to cash-balance plans?

• A)They want to shower their employees with money.
• B)Regulatory reform made it necessary.
• C)They save money with them as a result of reduced future benefits for older workers.
• D)All of the above are correct.
• E)Only B and C are correct.