D.C. Fortunately, some companies try to cushion the blow for employees that fall into this category. Some, like Kodak, allow all of their employees to choose between the new cash-balance plan and the old pension. Others give an additional lump-sum contribution to longtime employees. But quite frankly, some companies will simply hang you out to dry. So far the choices have been somewhat straightforward.
New employees benefit, long-time employees suffer.
The answer lies in variables that you may not even be able to answer. If you continue to receive large raises at your current job, chances are you would have been better off with the pension. But if you're earning paltry raises and not planning on sticking around much longer, the cash-balance plan could be a welcome change. If you're one of the lucky ones who gets to choose whether to stay in the old plan or switch to the new, run a few different scenarios through our calculator to help you evaluate which one is best. Inc. All Rights Reserved.