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What is Cash Balance Plan in HRM? PDF Download

Learn Cash Balance Plan definition in hrm with explanation to study “What is Cash Balance Plan”. Study cash balance plan explanation with HRM terms to review HRM course for online MBA programs.

Cash Balance Plan Definition:

  • Retirement program in which benefits are based on an accumulation of annual company contributions plus interest credited each year.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Cash Balance Plan Explanation:

A cash balancen plan is a bend on the customary benefits plan. Like a conventional benefits, a money offset plan furnishes laborers with an incredible choice annuity. Notwithstanding, in contrast to annuities, money equalization plans make an individual record for each secured worker, complete with a predetermined single amount. Building up a money equalization plan offers potential investment funds for managers. Money equalization plans picked up prevalence when a few organizations and state governments started changing over their customary benefits intends to money parity designs as an option in contrast to solidifying battling annuities. On the off chance that you have a money parity plan through your boss, you have the decision between annuitizing your advantages and getting your advantages as a singular amount. In the event that you pick an annuity, your money equalization will be paid out to you in littler segments in the years after you resign. In the event that you choose to take a single amount installment, you can take all the cash without a moment's delay and move it over, either to an IRA or to another business' arrangement.

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