Cash Balance Plans: Pushing Back Against the 401(k) in a Post-Pension Protection ActWorld.

This article identifies the current trend toward a defined contribution based system and the impact of the Pension Protection Act of 2006, the Statement of Financial Accounting Standards No. 158 and the Proposed Regulations for Hybrid Plans on this shift. More specifically, the article focuses on the cash balance plan and its increased significance following the PPA and the SFAS 158. Ultimately, this article finds that the cash balance model will still flourish in the post-PPA world because the hybrid plan structure reduces volatility associated with funding levels, produces financial accounting incentives and provides the employee with guaranteed retirement benefits. [ABSTRACT FROM AUTHOR]