Chapter 1 Introduction
- Cash Balance and Other Hybrid Pension Plans Defined
- The Legal Framework of Cash Balance Plans
- A Brief History of Cash Balance Plans
- Whipsaw
- Wearaway
- Age Discrimination
Chapter 2 Cash Balance Plan Design
- Basic Design
- Reasons for Offering Cash Balance Plans
- Designing Principal Credits
- Defining Interest Credits
- Compensation Defined
- Eligibility for Participation
- Vesting Requirements
- Benefits at Retirement
- Benefits Available
- Benefit Limits
- Ancillary Benefits
- Contributory Plans
- Pension Equity Plans
- Impact of the Pension Protection Act of 2006 on Hybrid Plan Design
- Plan Mergers
Chapter 3 Administration
- Parties Involved in Plan Administration and Oversight
- Administrative Tasks
- Service Providers
- Paying for Administrative Fees
- Other Administrative Considerations for Cash Balance Plans
Chapter 4 Conversions
- Plan Conversion Approaches
- Opening Account Balance Conversions
- Impact on Plan Participants
- Transition Alternatives
- Other Considerations for Conversions
Chapter 5 Age Discrimination Rules for Cash Balance Plans
- General Standards for Defined Benefit Plans
- Age Discrimination Controversy over Cash Balance Plan Design
- Safe Harbor Age Discrimination Standard
- Age Discrimination Rules Specific to Hybrid Defined Benefit Plans
- Other Age Discrimination Concerns
Chapter 6 Communication, Reporting, and Disclosure
- General Communication
- Communicating Plan Changes
- Participant Statements
- Summary Plan Descriptions
- Participant Communication About Plan Funding and Funded Status
- Communication at Distribution
- Other Reporting and Disclosure
Chapter 7 Plan Costs
- General Plan Cost Information
- Plan Funding Information
- Plan Accounting Information
- Other Plan Cost Information
Chapter 8 Eligibility and Vesting
- Minimum Participation and Vesting Requirements
- Determining Service
- Break in Service Rules
- Changing the Vesting Schedule
Chapter 9 Distributions
- Forms of Payment
- Required Distributions
- Taxation
Chapter 10 Accrual Rules
- Basic Rules
- Cash Balance Considerations
Chapter 11 Coverage and Nondiscrimination Testing
- Controlled Group
- Employees and Highly Compensated Employees
- Plan Coverage Requirements
- Defining Plans for Purposes of Testing
- Benefits Tests and Safe Harbors
- Other Nondiscrimination Considerations
- Separate Line of Business Rules
Chapter 12 Top-Heavy Testing
- Basic Top-Heavy Requirements
- Determining Key Employees
- Applying Top-Heavy Requirements
Chapter 13 Investment of Plan Assets
- Basic Rules for Plan Investments
- Relationship Between Assets and Liabilities
- Choosing Investments to Manage Risk
Chapter 14 Plan Termination
- Choosing to Terminate a Cash Balance Plan
- PBGC Requirements
- Notifying Plan Participants
- Other Considerations
Chapter 15 Qualified Domestic Relations Orders (QDROs)
- What Is a QDRO?
- Determining the QDRO Benefit
- Considerations During Plan Conversions
- Regulatory Guidance on QDROs
Chapter 16 Determination Letters
- Effect of a Requesting a Determination Letter
- Timing and Filing Considerations
- Special Situations
- Notification Requirements
Appendix A DOL Hypothetical Examples of Plan Expenses
Appendix B Model SPD Language
Appendix C Joint Implementation Guidelines
Appendix D Single Life and Uniform Lifetime Tables
Appendix E Joint Life and Last Survivor Table
Appendix F Model Language for the Annual Funding Notice
Appendix G Definitions of Section 415 Compensation
Appendix H Definitions of Code Section 414(s) Nondiscriminatory Compensation
Appendix I Department of Labor Audit Information
Appendix J Pension Equity Plan Determination Letter Processing Guidelines
Tables
- Treasury Regulations
- Internal Revenue Service Announcements, Notices, Memoranda, Rulings, and Procedures
- ERISA
- Code of Federal Regulations
- Department of Labor Opinions and Bulletins
- PBGC Releases and Instructions
- Age Discrimination in Employment Act (ADEA)
- Pension Protection Act of 2006 (PPA)
- Worker, Retiree and Employer Recovery Act of 2008 (WRERA)
- Table of Cases
- Bibliography
- Glossary
- Index
