Medical Firms Embrace Cash Balance Plan Design

Medical firms make up more than a quarter of employers offering cash balance plans, according to a new plan census by an Encino, a California-based cash balance consultant.

A news release from Kravitz said that among the other biggest users of the cash balance plan design are manufacturing firms, 14%; dental firms, 9%; legal services firms, 9%; and scientific and technical industries, 7%. Kravitz classified 16% of the cash balance employers in the “other” category.

According to the Kravitz data, there were 1,755 new cash balance plans created in the past five years versus 571 for the prior five-year period.

California had the most cash balance plan employers with 462 plans or 13% of the nation’s total, followed by New York at 405 (11%), Ohio at 293 (8%), Illinois at 253 (7%), and New Jersey at 237 (7%).

The Kravitz data show that 6% of the plans had more than 10,000 active participants, 14% had 9,999 to 1,000 participants, 12% had 999 to 100, and 16% had 99 to 25 participants.

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