An employee will receive a guaranteed retirement benefit under a cash balance pension plan, which is a type of defined benefit retirement plan.

1. Steps To Develop a
Cash Balance
Pension Plan
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Determine the structure and design
of the plan:
This includes deciding on the
contributions, vesting schedules,
benefit accrual rates, and other
features of the plan
Determine the funding strategy:
The trust must be funded on a
regular basis, so you will need to
decide on a funding strategy that
is appropriate for your business
Communicate the plan to employees:
It is important to clearly communicate
the details of the plan to your
employees so that they understand
how it works and what benefits it
provides
Establish a trust:
A cash balance plan must be funded
through a trust, which holds the
assets of the plan and pays out
benefits to retirees
Select a plan administrator:
The plan administrator is responsible
for managing the plan and ensuring
that it is in compliance with all
relevant laws and regulations
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Monitor and review the plan regularly:
It is important to periodically review
the plan to ensure that it is meeting the
needs of your business and your
employees, and to make any necessary
adjustments