PLANSPONSOR - April/May 2021 - 28

RESEARCH | 2021 DEFINED BENEFIT ADMINISTRATION SURVEY
Shedding Light on DB Plans
Data uncover the growing popularity of the cash balance type
E
ven as traditional defined benefit
(DB) plans are going the way of
the dinosaur, cash balance plans
remain the fastest growing sector of
retirement planning, showing a broadening
appeal across market sectors, according
to the " 2020 National Cash Balance
Research Report " from Kravitz, now part
of FuturePlan by Ascensus and the firm's
cash balance center of excellence. The latter
is a group of experts in cash balance
plans led by FuturePlan National Practice
Leader and President of Kravitz Inc., in Los
Angeles, Daniel Kravitz.
The number of new cash balance
plans, he says, increased 17% over 2017
and 2018, based on his firm's analysis of
clients' Forms 5500 filings for those two
years. That growth rate compares with 2%
for new defined contribution (DC) plans,
he says, noting that the 2018 plan year data
from Form 5500 filings is the most current
complete set available.
" The motivation for implementing
cash balance plans continues to be
allowing employees at professional service
firms to accrue benefits beyond what's
allowed in 401(k) plans, " Kravitz says.
" It used to be mainly law firms driving
the trend in new cash balance plans, but
now it's also medical groups, especially
specialty medical groups. "
The Cash Balance Research Report
cites 21,774 cash balance plans in 2018.
28 PLANSPONSOR.COM April - May 2021 Art by Simone Virgini
While health care agencies, medical
groups and law firms make up more than
60% of the market, cash balance plans are
becoming more widely known and increasingly
popular across the business world.
Sectors such as finance, construction and
manufacturing have shown steady growth
in setting up new plans.
While today's active traditional DB
plans are more apt to be found at large
corporations, cash balance plans are
popular with small companies. The
report reveals that 94% of the plans are
at firms with fewer than 100 employees,
and 59% have no more than 10 participants.
" The needs of small-business
owners to catch up on delayed retirement

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PLANSPONSOR - April/May 2021

Table of Contents for the Digital Edition of PLANSPONSOR - April/May 2021

Ready Solution?
Tiptop Health Savings Accounts
2021 Defined Benefit Administration Survey: Shedding Light on DB Plans
How TRO Might Benefit Plans
By Popular Demand
What's the ROI?
PLANSPONSOR - April/May 2021 - Cover1
PLANSPONSOR - April/May 2021 - Cover2
PLANSPONSOR - April/May 2021 - 1
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PLANSPONSOR - April/May 2021 - 15
PLANSPONSOR - April/May 2021 - Ready Solution?
PLANSPONSOR - April/May 2021 - 17
PLANSPONSOR - April/May 2021 - 18
PLANSPONSOR - April/May 2021 - 19
PLANSPONSOR - April/May 2021 - 20
PLANSPONSOR - April/May 2021 - 21
PLANSPONSOR - April/May 2021 - Tiptop Health Savings Accounts
PLANSPONSOR - April/May 2021 - 23
PLANSPONSOR - April/May 2021 - 24
PLANSPONSOR - April/May 2021 - 25
PLANSPONSOR - April/May 2021 - 26
PLANSPONSOR - April/May 2021 - 27
PLANSPONSOR - April/May 2021 - 2021 Defined Benefit Administration Survey: Shedding Light on DB Plans
PLANSPONSOR - April/May 2021 - 29
PLANSPONSOR - April/May 2021 - 30
PLANSPONSOR - April/May 2021 - 31
PLANSPONSOR - April/May 2021 - How TRO Might Benefit Plans
PLANSPONSOR - April/May 2021 - 33
PLANSPONSOR - April/May 2021 - By Popular Demand
PLANSPONSOR - April/May 2021 - 35
PLANSPONSOR - April/May 2021 - What's the ROI?
PLANSPONSOR - April/May 2021 - 37
PLANSPONSOR - April/May 2021 - 38
PLANSPONSOR - April/May 2021 - 39
PLANSPONSOR - April/May 2021 - 40
PLANSPONSOR - April/May 2021 - Cover3
PLANSPONSOR - April/May 2021 - Cover4
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