Defined Benefit/Cash Balance and Defined Contribution Combinations

• These are sophisticated arrangements that combine both defined benefit and defined contribution plans.
• The idea is to have large contributions for the principals and control the costs for other employees
• Through sophisticated testing methods, it is often possible to level the costs for other employees
• Principals derive the majority of their benefits through the defined benefit plan and other employees derive the majority of their benefits through the defined contribution plan.

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