Retirement Plans: 401(k)s, IRAs and Other Deferred Compensation Approaches 10th Edition by Allen, Joseph Melone, Jerry Rosenbloom, Dennis Mahoney

Exercise 9

An employer is looking at a merger with a company with an equivalent workforce size. The employer offers a traditional defined benefit plan, but the merger candidate has recently converted from a defined benefit plan to a cash balance plan. Describe the considerations involved in offering a recommendation whether to retain both pension forms or consolidate into one unified program.