Kravitz CB Report 2013 - Cash Balance Design

2013 National CASH BALANCE Research Report WWW.CASHBALANCEDESIGN.COM | (877) CB-PLANS RETIREMENT PLANS THAT SAVE TODAY AND BUILD TOMORROW Design, Administration and Management of Retirement Plans Los Angeles • New York • Atlanta • Las Vegas • Denver • Washington DC • Portland • Salt Lake City • Ann Arbor • Charleston • Phoenix © Kravitz, Inc., 2013. The information in this report is general in nature and provided for informational purposes only. 1 Cash Balance Retirement Plans Increase 500% in 10 Years Rising taxes, retirement savings crisis continue driving double-digit annual growth Every year, Kravitz publishes a national research report analyzing comprehensive Cash Balance retirement plan data from the most recent IRS Form 5500 fi lings.* These statistical highlights, charts

and graphs are provided as a reference for retirement plan professionals and others interested in learning more about Cash Balance Plans. Highlights: • Cash Balance Plans continue rapid rise while the number of 401(k) plans declines: The number of 401(k) plans declined 3% between 2010 and 2011 (the most recent IRS data available), while Cash Balance Plans increased 12%. • Dramatic growth rate sustained over 10 years: In 2001 there were only 1,337 Cash Balance Plans nationwide, and by 2011 there were 7,926, an increase of almost 500% in 10 years. • Stalled economy has not slowed Cash Balance growth: Despite the slow recovery and continuing economic uncertainty, adoption of new Cash Balance Plans continued to accelerate. Between 2009 and 2011, there was a 36% increase in new plans nationwide. • Cash Balance Plans now make up over 20% of all defi ned benefi t plans, up from 2.9% in 2001: The rise of Cash Balance Plans has coincided with a steady decline in traditional defi ned benefi t plans (see page 3 for more details). • Small and mid-size businesses continue to drive Cash Balance growth: 86% of Cash Balance Plans are in place at fi rms with fewer than 100 employees. • Cash Balance Plans also play a strategic role for some Fortune 100 companies and many professional services fi rms: The Top 10 largest plans (by asset size and sector) are listed on page 8. • The 30-year Treasury rate remains the most popular Interest Crediting Rate (ICR): while the 2010 Cash Balance regulations allowed a wider range of ICR options, most plan sponsors using Kravitz have stayed with the 30-year Treasury safe harbor rate to avoid unexpected cost issues with the new ICR options. *Source: Analysis performed by Kravitz, Inc., using data from IRS Form 5500 fi lings via the Judy Diamond Associates, Inc. database. The 2011 plan year data is the most current available. Additional data on defi ned contribution and defi ned benefi t plans comes from Private Pension Plan Bulletin Abstracts by the U.S. Department of Labor Employee Benefi ts Security Administration (EBSA), 2001–2010 Reports. © Kravitz, Inc., 2013. The information in this report is general in nature and provided for informational purposes only. 2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 7,926 9,115 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Cash Balance Plans:...

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