Detail Cash Balance Conversions   Oleh:  Mellors, Francine ; Arcady, Alex T. Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 189 no. 2 (2000), page 22-30. Topik: cash; cash balance; conversions Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.10 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel Wishing to attract younger talent and control costs, companies have been redesigning their defined benefit pension plans. An estimated 16 % of Fortune 100 companies have switched to a so - called cash balance formula. Some of the new cash balance plans allow employees to take lump - sum distributions. This appeals to the typical member of today’s younger and increasingly mobile workforce, who may not stay with a company long enough to enjoy the full benefits of a traditional pension plan. Congressional concerns about cash balance conversions focus on whether companies are adequately disclosing to participants the resulting changes in benefits and whether cash balance formulas discriminate against older employees. This has led the IRS to mandate that all determinations and examinations of cash balance conversions be forwarded to the IRS National Office for review. In informal discussions, the IRS has indicated it might withhold approval of all pending conversions to give the agency time to formulate a policy on qualification issues. In addition, the Equal Employment Opportunity Commission is considering whether conversions violate the Age Discrimination in Employment Act. Many companies have made the transition to a cash balance plan (for details on how some of them went about it, see “Staying Off the Cover of Time”). A company considering whether a cash balance conversion is in its best interest should understand : - How cash balance pension plans differ from both traditional defined benefit and defined contribution plans. - How a participant’s opening account balance and subsequent benefits are determined. - What the accounting and disclosure implications are of a conversion. - How converting to a cash balance formula affects the company’s projected benefits obligation, annual pension cost and funding requirements. - What business and employee-relations issues lead employers to switch to cash balance plans. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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