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U.S. Master™ Pension Guide, 2009 Edition

U.S. Master™ Pension Guide, 2009 EditionNew
Revised for 2009 to include relevant provisions of the Heroes Earnings Assistance Relief Tax (HEART) Act and the Emergency Economic Stabilization Act.

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CCH® PENSION — 6/11/08

New Cash Balance Plans Grew Dramatically From 2002 To 2006

From Spencer's Benefits Reports: There were 1,755 new cash balance plans established during the five-year period from 2002 through 2006. This represents a 307% increase over the 571 new cash balance plans created from 1997 through 2001, according to statistics compiled by Louis Kravitz & Associates.

Distribution by plan size as of Dec. 31, 2006, was as follows:

Active Participants # Of Plans % Of Total
More than 10,000 228 6%
9,999 to 1,000 510 14
999 to 100 444 12
99 to 25 560 16
24 to 10 771 21
9 or fewer 1,075 30

The largest number of plans was found in California (462), followed by New York (405), Ohio (293), Illinois (253), New Jersey (237), Pennsylvania (196), Texas (164), Michigan (146), Minnesota (138), and Florida (118).

The medical field was most likely to sponsor a cash balance plan (28% of plans), followed by manufacturing (14%), dental services (9%), legal services (9%), scientific and technical industries (7%), and financial services (6%). Three business types represented 3% of the plans each: insurance services; construction and development; and products, goods, and supplies. Utilities represent 2% of the plans, while the remaining 16% represented “other” business types.

Smaller plans dominated cash balance plans, as follows:

Asset Size % Of Plans
Less than $250,000 28%
$250,000 to $499,999 17
$500,000 to $999,999 13
$1 million to $9.9 million 17
$10 million to $99.9 million 13
$100 million to $1 billion 9
More than $1 billion 3

For more information, visit http://www.cashbalancedesign.com.

 

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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