Click here to add us to your favorites




cash balance plan (CBP)

Definition

Type of pension plan under which an employer contributes a fixed percentage (typically 3 to 4 percent) of the employee's salary to an interest bearing account. CBP is more advantageous to younger employees as they have a longer period to build up retirement-savings.

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z