To date, employers haven’t shown much interest in cash balance or other types of hybrid pension plans.
Research from Towers Watson shows just 24 of Fortune 100 companies offered a hybrid in 2009 — not bad but not exactly Prius-level penetration, if you know what I mean. (Nearly a million Priuses have been sold in the United States since the car’s rollout, in case you were wondering.) However, recent IRS rules may pique employers interest in hybrid pension plans, TW predicts.
A little history: In 2006, the Pension Protection Act acknowledged the legitimacy of hybrid plans, and in October 2010, the IRS proposed rules that will provide more clarity on the plans.
