Benefits April 4, 2013

Cash Balance Plan Growth Outpacing 401(k)s

April 4, 2013 (PLANSPONSOR.com) – The rate of growth for cash balance plans is significantly higher than for 401(k) plans, according to Kravitz, Inc.
 
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Highlights from Kravitz’s 2013 Cash Balance Research Report, provided to PLANSPONSOR, reveals the number of new cash balance plans added in 2011 was 1,097, for a national total of 7,927. The data was derived from 2011 Internal Revenue Service Form 5500 data, which was the most recent available year.

The number of participants nationwide in cash balance plans is 11,064,623, and cash balance plan assets in 2011 totaled $724 billion, up from $713 billion in 2010. Average assets in 2011 were $91.4 million per plan, and annual contributions into cash balance plans for 2011 totaled $30.1 billion.

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In addition, the data yielded the top 10 cash balance plans by asset size: 

  • International Business Machines Corporation, $52,194,336,668 
  • AT&T Inc., $45,882,003,000 
  • The Boeing Company and Consolidated Subsidiaries, $25,348,680,633 
  • Ford Motor Company, $19,674,063,037 
  • Alcatel-Lucent USA Inc., $18,782,742,000 
  • 3M Company, $14,912,195,000 
  • Northrop Grumman Corporation, $13,915,422,431 
  • United Technologies Corporation, $13,879,415,658 
  • Honeywell International Inc., $13,350,289,288
  • Citigroup Inc., $13,167,867,119

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