New PwC design combines features of DB, DC worlds.(News)(PricewaterhouseCoopers LLP)

Pensions & Investments, July, 2006 by Geisel, Jerry

Byline: Jerry Geisel A new retirement plan design may reduce the problems associated with offering defined benefit plans or exclusively offering defined contribution plans. The design, developed by the human resources services unit of PricewaterhouseCoopers LLP, comprises both a defined benefit and a defined contribution plan.

In the defined benefit portion of the design, which PwC calls Pension Preservation Plus, an account is established for each employee for record-keeping purposes. Employees receive credits such as a fixed dollar amount, an amount equal to a percentage of salary or an allocation that would vary by age or length of service. When vested employees leave or retire, they receive 100% of the credits, which they can take as a lump sum or...

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