Freezing A Defined Benefit Plan To Reduce Current Year Contribution Obligation
Defined benefit pension plans, including cash balance plans, require a contribution each year, which is primarily used to fund the benefits which participants accrue (i.e., earn) during the plan year. The annual required contribution may also include an amount needed to make up a shortfall in a prior year in the investment return on plan assets. In most defined benefit pension plans, a participant earns a benefit for a plan year after working 1,000 or more hours during that...
