2006 Headlines
Johnson School Professor Recently Completed Study on Cash Balance Pension Plans
September 12, 2006 | Ithaca, NY - The Pension Protection Act of 2006 was an effort by Congress to stabilize the pension system. Since the passing of that Act, we've seen a number of companies publicly announce that they intend to scale back their traditional pensions (such as DuPont & Co.) or win court approvals to terminate the plans (Delta Airlines). Julia D'Souza, an Associate Professor of Accounting at the Johnson School at Cornell University, has just completed a new study that may help understand the pension crisis. The study focuses on why firms would choose to convert from a defined benefit pension plan to a cash balance plan and what the differences are between the two in terms of employee benefit and employer cost.
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