Cash balance pension plans are a type of employee retirement plan that has two distinct features: (1) the employer contributes an amount equal to a percentage of the employee’s annual earnings to the plan, and (2) the plan promises a certain rate of return. for this contribution. Under the cash balance plan, the benefit is always expressed as the total account balance. Balance-of-cash pension plans differ from “traditional” defined benefit pension plans, which, in contrast, promise the employee a fixed dollar amount (either on a periodic or lump-sum basis), based on the employee’s length of service and earnings. in the years leading up to retirement. The focus of cash balance plans is on wealth accumulation and mobility. On the other hand, traditional defined benefit plans are designed to encourage career placement with a single employer. Significant litigation has arisen in recent years as employers shift from “traditional” defined benefit plans to cash balance plans. Older, long-term employees, who typically receive lower payouts under cash balance plans, have argued that such plans are unfairly discriminatory.