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My wife's employer converted their defined benefit pension to a "Cash Balance" plan earlier this year. Though we'd like to think we know a thing or two about investing and retirement planning, etc..., we're really baffled as to the in'-and-out's of this new type of pension plan. She now gets a quarterly statement from her employer that shows, in big bold print (of course), a dollar amount that I guess is the "cash balance". What does this "cash balance" really represent?

What happens if she were to leave that employer (not through a retirement, though)? Does she get that dollar amount in a lump sum - almost like a 401k rollover?

As you can probably tell, the information provided by her employer is not helpful. Any web sights out there that may be helpful?

All info. is greatly appreciated.


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