What is a cash-balance pension plan?

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NYCTaxpayer

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Posted 7 years ago

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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.