Steps To Develop a Cash Balance Pension Plan 1 2 3 4 5 Determine the structure and design of the plan: This includes deciding on the contributions, vesting schedules, benefit accrual rates, and other features of the plan Determine the funding strategy: The trust must be funded on a regular basis, so you will need to decide on a funding strategy that is appropriate for your business Communicate the plan to employees: It is important to clearly communicate the details of the plan to your employees so that they understand how it works and what benefits it provides Establish a trust: A cash balance plan must be funded through a trust, which holds the assets of the plan and pays out benefits to retirees Select a plan administrator: The plan administrator is responsible for managing the plan and ensuring that it is in compliance with all relevant laws and regulations www.pensiondeductions.com 6 Monitor and review the plan regularly: It is important to periodically review the plan to ensure that it is meeting the needs of your business and your employees, and to make any necessary adjustments