Cash balance pension plan conversions and the new economy
By: Julia Lynn Coronado and Phillip C. Copeland.
Contributors: Copeland, Phillip C.
Series: Finance and economics discussion series ;; 2003-63; Finance and economics discussion series (Online) ;; 2003-63.
Publisher: Federal Reserve Board
Published: 2003
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "Many firms that sponsor traditional defined benefit pensions have converted their plans to cash balance plans in the last ten years.  Cash balance plans combine features of defined benefit (DB) and defined contribution (DC) plans, and yet their introduction has proven considerably more controversial than has the increasing popularity of DC plans.  The goal of this study is to estimate a hierarchy of the influences on the decision of a firm to convert its traditional defined benefit pension plan to a cash balance plan.  Our results indicate that cash balance conversions have been undertaken in competitive industries with tight labor markets and can be viewed largely as a response to better compensate a more mobile labor force.  Indeed, many firms appear to increase their pension liabilities through such conversions.  The results also shed light on the possible determinants of the broader shift from DB to DC pension coverage"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 7/20/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.