Financial Planner

Answer: D - The difference particular to cash balance plans and not shared with defined benefit plans is that cash balance plans creates a separate account established for each participant using a hypothetical account balance. This is the only exception to their likeness to include: a) neither plan is portable b)retirement benefits/distributions are not adjusted for cost of living c) both use the Pension Benefits guaranty Corporation d )forfeitures must be used to reduce employer’s contribution e) plans are more beneficial to younger participants f) neither plan have inexpensive.