Cash balance plans may be an anomaly for the defined benefit industry in that they actually increased during the Great Recession.
According to John Guido, principal at provider research firm Retirement Research Inc., there was a minor increase in the retirement vehicle in 2007, but then pretty rapid growth from 2008 through 2011. Especially rising in growth with companies at the low end of the market, which he characterizes as those with less than 50 employees and in the couple hundred thousand to about $5 million in assets range, cash balance plans comprised 10% of the overall defined benefit universe in 2008 and have risen to 20% of all plans now.
