A cash-balance pension plan is a defined benefit plan where the benefits are defined in terms of an account balance at the time of retirement rather than annual payments. In a cash-balance pension plan, an employee-specific account is typically credited with a percent of his or salary each year and grows at a promised interest rate. Thus, unlike a defined contribution plan, the employer bears the investment risks of the account. New York City does not offer such a plan.
For information regarding benefits administered by the New York City
Employees' Retirement System (NYCERS), please contact NYCERS' Call
Center at (347) 643-3000 or visit
www.nycers.org.
