Cash balance plan

{
  "id": "MLC-T-ECS-000241",
  "term": "Cash balance plan",
  "field": "Economic statistics",
  "definition": "Defined benefit plan guaranteeing a benefit amount to covered employees on the basis of a known formula designed to provide a lump sum at retirement.\n\nNote: For each year worked, employees are credited with a specified contribution and a rate of interest on that contribution, which together will provide a lump sum at retirement. The lump sum may be converted to an annuity.\n\nSee the article, \"Cash balance pension plans: The new wave.\"",
  "references": [
    "BLS Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/cash-balance-plan/"
}